- Bitcoin started 2022 with a value around $47,092 and has lost 29.4% of its value so far this month.
- Some analysts still believe there is room for BTC to lose further.
- Dave The Wave considers that the BTC correction could reach 25,000 in such a changing and irregular market.
If you were one of those who wished during the New Year’s toast that the price of Bitcoin grow exponentially, this wish is far from being fulfilled. 2022 started off on the wrong foot and digital assets fell beyond 50% of their all-time high. Some analysts still believe there is room for BTC to lose further, so you will have to tighten your belt.
During these down days, digital gold was closer to $0 than its all-time high of $68,789 marked on November 10, 2021 and these voices will continue to be heard more and more if the pullback continues, as analyst Dave The Wave (@davthewave).
This Twitter user with more than 92 thousand followers and a lot of activity on his account was one of the few who predicted the collapse of May Y a similar situation exists today.
Dave The Wave predicts drop to $25K
Through different graphs in a twitter thread , Dave The Wave considers that BTC It is in a downtrend that has not yet reached the rebound zone. Hitting $33,184 on January 24 was not the bottom. From his point of view, he believes that the correction could reach up to $25,000 in such a changeable and irregular market.
The analyst uses various tools to determine this value. It starts with a Fibonacci extension and then watches for the possible formation of a Head, Shoulder (HCH), which will end at that price. Is this really going to happen? These are theories looking at charts and their past successes give them credibility. Although sometimes even the best fail, as was the case with Plan B, who predicted that Bitcoin would end 2021 at more than $100,000.
Dave The Wave does not see any support that could generate a bounce before reaching said zone of 25,000.
“The problem is that once you lose that 40K area, there’s not much support underneath.”, were the words of the analyst.
Others, on the other hand, consider that the 30,000 is vital to begin the ascent.
Since the series of tweets was published on Sunday, Bitcoin suffered a lot on Monday, but woke up this Tuesday with some relief. On the first day of the week it fell to the $33,000 range when it had started the day at $36,200 to finally close at $36,600.
At the time of this writing, Tuesday had delivered increased stability. The price was $36,800 with a peak of $37,000. Today that seems to be the resistance to break before starting a lateralization and thus stabilize a new value. From there a new rally could start to the $40,000 zone at least. Friday was the last time for BTC at that value.
“If Dave The Wave’s analysis is anything to go by, investors may need to brace for the shock as the next stop may be the 25,000 range, which is the next major support point.”, describes the news site News BTC.
Depending on the branch and the analysis there will be different scenarios to predict how Bitcoin will respond. What is proposed by Dave The Wave is interesting and we will have to be attentive to take action. A new dip could be coming.
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