Bitcoin May Rally 35% to $117,000, Says Analyst

A crypto analyst, known for accurately predicting the 2021 Bitcoin market downturn, has suggested that Bitcoin (BTC) may be forming a bullish reversal pattern. The analyst, who goes by the pseudonym Dave the Wave, shared his insights with his 149,300 followers on the social media platform X. According to Dave the Wave, Bitcoin appears to be in the early stages of an inverse head-and-shoulders pattern on the daily chart, a formation traditionally viewed as bullish. This pattern indicates that buyers are entering the market without waiting for the price to revisit recent lows.

Dave the Wave presented a chart that suggests Bitcoin may repeat its price action from the second half of 2024, when it formed a similar bullish reversal pattern before surging to a new all-time high. The chart implies that Bitcoin could rally close to $90,000 to form the pattern’s neckline before dropping below $80,000 to create the right shoulder. The breakout target for BTC, according to the chart, is $117,000.

Dave the Wave also commented on the fundamental properties of BTC, noting that its primary use case has evolved from being a tool designed to protect against authoritarian control to becoming a reliable safe-haven asset. He believes that Bitcoin is steadily gaining recognition as an alternative currency and is moving towards market maturity and price discovery. The analyst advises that understanding Bitcoin's true value and potential can prevent disappointment and demoralization.

Earlier this month, Dave the Wave reiterated his prediction that Bitcoin will soar to $200,000 amidst an uncertain macroeconomic backdrop. He believes that this uncertainty will drive investors to seek refuge in the flagship crypto asset. At the time of writing, Bitcoin is trading at $85,416, up over 2% in the past day.