Popular analyst Dave the Wave says he sees indications that Bitcoin may be entering another bull market. Dave the Wave sees many “long-term indicators” turning green. In a new post, he shares with his 137,000 followers that if he were a “gamble man,” he would keep an eye on Bitcoin’s weekly MACD.
Moving Average Convergence Divergence
The abbreviation MACD stands for moving average convergence divergence and is a popular tool in technical analysis. Analysts use this indicator to determine the direction and strength of the trend. The indicator is especially popular for its simplicity and usefulness in identifying trend directions and trend strength.
However, it is important to remember that no indicator is perfect and there are always risks associated with using these types of tools. Dave the Wave identifies six moments in the chart where the weekly MACD turned bullish, just before Bitcoin started another rally.
With the chart above, Dave the Wave is insinuating that a very bullish period could be coming for Bitcoin. If he is right, then we should see another Bitcoin price explosion in the short term, which will take us above $ 30,000 in any case.
Bitcoin vs gold
If Dave the Wave looks at the long term, he thinks it makes sense to compare the Bitcoin price to gold, instead of US dollars. Over a period of 20 years, Bitcoin has the potential to reach the same market cap as gold, according to the analyst.
If Bitcoin manages to reach that level, the price would flip about 22 more times from its current point. That would lift Bitcoin from its current level to around $616,000.
“It is best to say that 1 Bitcoin could be equivalent to 400 ounces of gold in the long run,” said a highly optimistic Dave the Wave. At the time of writing, Bitcoin is trading around $28,000, putting that value of 400 ounces of gold still pretty far off.
