Trader Who Called May 2021 Bitcoin Crash Says BTC Flashing Strong Bottom Signals, Predicts Short-Term Rally

The analyst who called the May 2021 Bitcoin (BTC) collapse and the double top pattern at $69,000 now thinks BTC’s chart looks optimistic.

Pseudonymous analyst Dave the Wave tells his 121,500 Twitter followers that Bitcoin’s weekly moving average convergence divergence (MACD) indicator is flashing a strong bottom signal.

“The worm has turned on the weekly MACD. Just coincidence… or technical analysis?”

Source: davthewave/Twitter

Traders use the MACD to spot possible trend reversals. Looking at the trader’s chart, Bitcoin’s weekly MACD appears to be rising at a level that has marked the bottom of the 2015 and 2018 bear markets.

On top of a recovering MACD, Dave the Wave also says he’s optimistic about Bitcoin’s price chart as BTC is currently hovering at an area of long-term support.

“Why have some confidence in this Bitcoin chart? Realism and continuity…. as opposed to continually projecting a hyper-bull outlook onto the chart. Looking good.”

Source: davthewave/Twitter

Looking at the daily chart, the crypto analyst says BTC is facing a pair of diagonal resistances.

“Currently meeting short-term resistance, which is not much resistance at all, in my opinion. It’s the longer-term second line of resistance that’s more significant, in my opinion.”

Source: davthewave/Twitter

BTC is trading for $21,015 at time of writing. The top-ranked crypto asset by market cap is down more than 6% in the past 24 hours. Bitcoin also remains down nearly 70% from its all-time high, which it hit last November.

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