Bitcoin traders and enthusiasts have been eagerly anticipating the next big move in the cryptocurrency market, with 2019’s fake rally still fresh in their minds.
However, a prominent BTC trader known as Dave the Wave on social media platform X offers a reassuring perspective. According to DaveThe conditions that led to false gains in 2019 are unlikely to be repeated in the current market cycle.
this fake rally 2019 Much to the dismay of many Bitcoin investors. It is characterized by a sudden breakout that causes the price of Bitcoin to surge, only to then fall back just as quickly.
This rollercoaster ride is attributed to Bitcoin only remaining in the “buy zone” for a short time before experiencing severe price swings.
Those of you who have followed me for a while may remember my call for 2019 #btc Spikes serve as “mini bubbles”. This is based on the LGC model where price moves too fast/parabolically out of the buy zone.
This time, there is no such thing. Even if the price drops a little more… pic.twitter.com/1o4CETVcBf
— Dave Wave ???????? (@davthewave) September 26, 2023
Prospects for Bitcoin bull run to continue rising
Dave the Wave, a trader known for his insightful analysis, says this time is different. Compared to 2019, Bitcoin has spent more than a year in the buy zone, setting the stage for a more sustained bull rally.
He backs up this assertion with technical analysis, specifically the Monthly Moving Average Convergence Divergence (MACD), a momentum indicator that can signal reversals in an asset’s trend.
“Those who have followed me for a while may remember that I called the 2019 BTC surge a ‘mini-bubble.’ This was based on the LGC model, where price moved too fast and went parabolically out of the buy zone,” Dave said. “This time, there is no such thing.”
BTC market cap currently at $527 billion. Chart: TradingView.com
As of latest data, Bitcoin is trading at $27,091.02 Coin Geckoreflecting a gain of 2.7% in the past 24 hours and a gain of 1.6% in the past seven days.
Despite its recent struggles to stay above the $30,000 mark, the cryptocurrency is still showing a bullish reversal considering its performance throughout the year.
A stronger dollar and the outlook for Bitcoin
However, there is one notable factor at play: the strength of the U.S. dollar. The U.S. Dollar Strength Index (DXY), which measures the U.S. dollar’s performance against a basket of major foreign currencies, recently reached its highest level since November 2022.
interesting is the opposite The relationship between DXY and Bitcoin 2023. If the US dollar continues to strengthen after the DXY golden cross, it could limit Bitcoin’s upside potential in the coming months.
In a market characterized by unpredictability, traders and investors will be paying close attention to Dave the Wave’s insights and the evolving relationship between Bitcoin and the US dollar.
As the cryptocurrency market continues to mature, it remains to be seen whether Bitcoin’s current stay in the “buy zone” will actually pave the way for a sustained bull rally, or if new market dynamics will emerge to challenge this prediction.
Featured images from iStock