Bitcoin Correction Is Healthy for the Long-Term Uptrend, Says Trader Known for Making Timely BTC Calls

Pseudonymous analyst DavetheWave tells his 146,700 followers on the social media platform X that Bitcoin's latest move below $60,000 has invalidated prospects

In a recent analysis shared with his 146,700 followers on the social media platform X, the trader says that Bitcoin’s recent failure to break above the $60,000 level has invalidated the possibility of a parabolic surge in the coming weeks. Instead, he believes that the flagship digital asset will continue to consolidate throughout the third quarter, setting the stage for a stronger rally later this year.

“A positive of BTC price not going parabolic is that it continues to develop in a relatively stable technical manner–consolidation and then renewed strength going into the 4th quarter. A manic market at a later date would see higher prices than if it came earlier.”

According to Dave the Wave, Bitcoin’s price action is suggesting that the cryptocurrency will continue to consolidate in the coming months, building a stronger base for a powerful rally later in 2023. The analyst recently predicted that BTC could drop as low as $50,000, where it will likely find support at the 0.382 Fibonacci retracement level. He noted that such a drop would put Bitcoin back into the “buy zone” of his logarithmic growth curve (LGC) model, which aims to predict Bitcoin’s longer-term cycle lows and highs while filtering out shorter-term volatility.

Dave the Wave added that the deep drawdown would set BTC up “for renewed strength to the upside.”

Bitcoin is trading at $60,357** at the time of writing, up from its 24-hour low of **$58,443.

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