A cryptocurrency analyst who accurately predicted Bitcoin's 2021 crash believes BTC is building a lasting foundation for the next phase of its bull run.
Anonymous crypto strategist Dave the Wave shared insights with his 149,300 followers on platform X, suggesting Bitcoin appears to be forming an inverse head-and-shoulders pattern on its daily chart.
Key Market Patterns Emerging
The inverse head-and-shoulders structure is traditionally viewed as a bullish reversal pattern. It signals that buyers are no longer waiting for prices to retest recent lows before accumulating assets.
Dave the Wave projects Bitcoin could:
- Rally toward $89,000 initially
- Pull back to support at $77,000
- Ultimately surge to new all-time highs above $110,000
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Market Psychology vs. Technical Reality
Despite shifting market sentiment toward bearishness, the analyst maintains Bitcoin's long-term uptrend remains intact. Key observations include:
- Price action suggests the correction is nearing completion
- Objective chart reading reveals regular patterns of fluctuation and adjustment
- New observers often identify current prices as adjustment-period conclusions
- Daily traders frequently misinterpret these phases as cause for panic
"Time passes, and with it, charts evolve. Anyone objectively observing the chart—even those unfamiliar with markets—would likely conclude prices are finishing another routine adjustment. Yet those hyper-focused on daily fluctuations now approach near-panic. This stems from collective emotion and 'money illusion.'"
Current Bitcoin Status
At publication time, Bitcoin trades at $83,500. The asset continues demonstrating characteristics of major base formation—a pattern historically preceding significant upward movements.
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FAQ: Understanding Bitcoin's Market Behavior
Q: What confirms the inverse head-and-shoulders pattern?
A: The pattern requires three troughs (left shoulder, head, right shoulder) with the middle trough deepest. A neckline breakout confirms the reversal.
Q: How reliable is this pattern for Bitcoin?
A: While no pattern guarantees outcomes, BTC has historically respected technical formations with ~80% accuracy when volume confirms the breakout.
Q: Why do traders panic during corrections?
A: Short-term focus exaggerates downward movements. Most panic sells occur near cycle bottoms, missing subsequent recoveries.