Bitcoin Correction Insights

A veteran crypto trader with a knack for identifying Bitcoin’s market tops and bottoms believes BTC is nearing the end of its current correction.

Pseudonymous trader and analyst Dave the Wave shares insights with his 148,000 followers on the social media platform X, indicating that Bitcoin is strongly reacting to the 365-day simple moving average (SMA).

His analysis suggests that BTC may be on the verge of bottoming out at the 365-day SMA for the fourth time since the bull market began, coinciding with the 0.5 Fibonacci level. Traders often utilize the Fibonacci retracement tool to identify potential entry and exit points based on the Fibonacci ratio.

> “Follow the yellow brick road…”

As of now, Bitcoin’s 365-day SMA is around $74,400. Despite the prevailing market fear, Dave the Wave posits that BTC may mirror its August 2024 correction, where it dipped to the 0.382 Fibonacci level before embarking on fresh rallies.

> “A BTC observation. Now a 38% real correction of the move up as per last time.”

The trader recently remarked that a deep drawdown could set the stage for Bitcoin to rally to around $180,000 by the year’s end.

> “Why complicate things?”

As of the latest data, Bitcoin is trading at $86,114, which is approximately 21% down from its all-time high.