Bitcoin's Impending "Waterfall Event": Analyst Warns of $80K Plunge

Bitcoin's recent price action has sparked concern among crypto investors, with one prominent analyst warning of an impending "waterfall event." Pseudonymous analyst Dave the Wave, known for accurately predicting the 2021 crypto crash, believes that Bitcoin (BTC) is nearing a significant downturn.

According to Dave the Wave, Bitcoin is currently testing support at around $90,000. He expects the cryptocurrency to mimic its late 2024 price action, which saw it plunge to the 0.382 Fibonacci level before rebounding. The analyst predicts that Bitcoin could fall to around $80,000 in the near future.

Dave the Wave is closely monitoring the moving average convergence divergence (MACD) indicator on the weekly chart. He believes that BTC's MACD will hit the zero line level, resetting en route to tapping the 0.382 Fibonacci level. Despite his bearish outlook, the analyst believes that the deep drawdown will set the stage for a Bitcoin rally to around $180,000 by the end of the year.

At the time of writing, Bitcoin was trading at $91,529. While Dave the Wave's predictions should be taken with a grain of salt, his track record suggests that investors should pay close attention to his analysis. As always, it is essential to do thorough research and consider multiple sources of information before making any investment decisions.