Bitcoin Eyes $74K as Potential Bottom Amidst Market Correction

Bitcoin's recent market correction has sparked interest among traders and analysts, with some predicting a potential bottom for the cryptocurrency. One pseudonymous trader, Dave the Wave, has gained attention for accurately calling Bitcoin's market tops and bottoms in the past. In a recent analysis, Dave the Wave suggested that Bitcoin could be nearing the end of its current correction, with the 365-day simple moving average (SMA) playing a significant role in the price action.

Dave the Wave's chart indicates that Bitcoin may be on track to bottom out at the 365-day SMA for the fourth time since the beginning of the bull market. This level also coincides with the 0.5 Fibonacci level, which traders often use to spot potential entry and exit points. The trader believes that Bitcoin is following a similar pattern to its August 2024 correction, where it dipped to the 0.382 Fibonacci level before launching fresh rallies.

At the time of writing, Bitcoin's 365-day SMA is hovering around $74,400. Despite the market's fear, Dave the Wave remains optimistic about Bitcoin's prospects. He recently stated that a deep drawdown could set the stage for a Bitcoin rally to around $180,000 by the end of the year. As of now, Bitcoin is trading at $86,114, about 21% down from its all-time high.