bitcoin traders and enthusiasts have been eagerly anticipating the next significant move in the cryptocurrency market, with memories of the fake 2019 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 the false rally of 2019 are unlikely to be repeated in the current market cycle.
He bitcoin-fakeout-unlikely-as-btc-flashes-healthy-long-term-indicators-says-top-analyst/” target=”_blank” rel=”noopener nofollow”>fake rally 2019 It left many bitcoin investors disappointed. He was characterized by a sudden breakout that caused btc prices to skyrocket, only to see them fall just as quickly.
This rollercoaster ride was attributed to bitcoin spending only a short time in the “buy zone” before experiencing wild price swings.
Those who have followed me for some time may remember my call from 2019 btc?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#btc peak like a ‘mini bubble’. This was based on the LGC model, where the price was moving too quickly/parabolically out of the buy zone.
This time, none of that. Even if prices dropped a little more… pic.twitter.com/1o4CETVcBf
– dave the wave (@davthewave) September 26, 2023
The promise of a sustained bitcoin bull rally
Dave the Wave, a trader known for his insightful analysis, suggests this time is different. Unlike 2019, bitcoin has spent over a year inside the buy zone, setting the stage for a more sustained bullish rally.
Back up this claim with technical analysis, particularly the convergence and divergence of the monthly moving average (MACD), a momentum indicator that can signal a reversal in an asset’s trend.
“Those who have followed me for some time may remember my description of the 2019 btc peak as a ‘mini bubble.’ This was based on the LGC model, where the price was moving too quickly and parabolically out of the buy zone,” Dave said. “This time, no such thing.”
btc market cap currently at $527 billion. Chart: TradingView.com
According to the latest data, bitcoin is trading at $27,091.02 via bitcoin” target=”_blank” rel=”noopener nofollow”>CoinGeckoreflecting a 2.7% increase in the last 24 hours and a 1.6% increase in the last seven days.
Despite recent struggles to stay above the $30,000 mark, the cryptocurrency continues to show a bullish reversal trend considering its performance throughout this year.
Dollar Strength and bitcoin Outlook
However, there is one notable factor at play: the strength of the US dollar. The US Dollar Strength Index (DXY), which measures the performance of the dollar against a basket of major foreign currencies, recently reached its highest level since November 2022.
What is intriguing is the reverse. bitcoin-price-going-to-crash-again-202309280852″ target=”_blank” rel=”noopener nofollow”>relationship between DXY and bitcoin in 2023. If the dollar continues to strengthen after the DXY golden cross, it could limit bitcoin‘s bullish potential in the coming months.
In a market characterized by its unpredictability, traders and investors will closely follow the ideas of Dave the Wave and the evolution of the relationship between bitcoin and the US dollar.
As the cryptocurrency market continues to mature, it remains to be seen if bitcoin‘s current stay in the “buy zone” will truly pave the way for a sustained bullish rally, or if new market dynamics will emerge that challenge this prediction.
Featured image from iStock
