Bitcoin Could Retest $8,400, Says Trader Who Called BTC’s 50% Crash and Recovery

It goes without saying that Bitcoin’s price action over the past few weeks has shaken many digital asset investors in the industry. The crash from $10,000 to $8,400 liquidated dozens of millions worth of leveraged positions, forcing many on the sidelines, data from Skew.com shows.

Unfortunately, the cryptocurrency is likely to retest $8,400 once again, a top analyst has warned.

Bitcoin Could Soon Retest $8,400, Warns Top Analyst

Few have called Bitcoin’s price action as well as Dave the Wave has over the past few months; in the middle of last year, the analyst predicted a retracement to $6,400 when the asset was rallying above $10,000, and more recently, he called for a retracement from $11,000 to $8,500.

Now, he’s suggesting that BTC is on track to hit $8,400 in the coming weeks, likely in April. A chart accompanying this forecast suggests that Dave expects this to happen because Bitcoin falling to the local lows will satisfy its repeating pattern of occasionally revisiting a long-term curve that has predicted BTC’s overall trajectory for the past two years.

Still Long-Term Bullish

Despite Dave’s concern of a short-term decline, he remains confident that the leading cryptocurrency is on a trajectory of long-term growth past the $20,000 high of 2017.

Per previous reports from NewsBTC, he said that Bitcoin is in the midst of “turbulence before take-off,” pointing to a chart that shows the current price action in the crypto market is eerily reminiscent to that of late-2016, just months before Bitcoin began its rally from $800 to $20,000 in a year’s time.

Dave the Wave believes that BTC is on track to hit a six-digit price point in the coming two to three years. Dave backed this prediction by pointing out the cryptocurrency is on the verge of finishing a fractal correction and is about to break past of a long-term descending trendline, which marked the two swing tops over the past two years.

A move past the trendline, which will soon line up with the long-term buying zone for Bitcoin, is likely to kick off a rally to $100,000, the trader suggested.

This lofty prediction can be backed up by the famous stock-to-flow model from PlanB, which equates Bitcoin’s scarcity to its market capitalization. Proven to be cointegrated with BTC’s price and having been backtested to a 94% R Squared, the model suggests BTC will have a fair price of around $55,000 to $100,000 after the 2020 block reward halving in May.

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Source: Newsbtc

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