Technical analyst Dave the Wave sees $100,000 as the long-term target of bitcoin. He accurately predicted the BTC bottomin mid-$6,000s.
A technical analyst and trader known as Dave the Wave sees $100,000 as the long-term target of bitcoin. The analysis comes after he accurately predicted BTC would bottom out in mid-$6,000s in the short-term.
Since dropping to as low as $6,410 across major cryptocurrency trading platforms, the bitcoin price rebounded to $7,200. But, the short-term outlook of BTC remains gloomy as selling pressure is expected to intensify.
Dave the Wave’s technical analysis of the bitcoin price chart dates back to 2011 when BTC was trading for less than $1.
Since then, the bitcoin price has demonstrated a parabolic move as it increased exponentially in value.
The same parabolic line has remained in tact throughout the past eight years, as BTC rebounded strongly to bearish tests of the bottom of the line.
The adherence of of bitcoin to an exponential price trend for a long period of time—which also led the analyst to accurately identify the mid-$6,000 bottom long before it materialized—is the main basis of large macro targets.
In recent months, high profile investors like Tim Draper, Tom Lee, and Brian Kelly all shared long-term targets of over $250,000 within the next three years.
Speaking to CCN, Dave the Wave confirmed that his target is $100,000 by late 2022 with the potential to rise even higher in the years ahead.
Technicals point toward a volatile short-term trend and an ultra bullish long-term trend for bitcoin. Fundamental factors also indicate that the macro prospect of BTC remains bright.
The three major fundamental catalysts of bitcoin over the long-term will be: improving infrastructure serving a wider range of users, rising hashrate and other on-chain numbers like transaction volume in USD, and events that affect the scarcity of the asset.
Data from bitcoin blockchain explorer Blockchain.com shows that the hashrate of the Bitcoin network is at an all-time high again. This comes after the price of BTC dropped below breakeven price of mining even for major miners.
The consistent increase in the hashrate of bitcoin throughout 2019 in what has been a difficult year for miners show their confidence in the long-term trajectory of BTC.
Newly emerged custodians and strictly regulated exchanges in the likes of Bakkt have recorded record high volumes in the final month of December.
The expansion of new infrastructure providers in the cryptocurrency market will enable the asset class to target a broader base of investors including accredited and institutional investors over the long run.
Lastly, as an asset with a fixed supply cap at 21 million, any event that impacts its scarcity in any way is likely to have a large effect on its price over time.
The block reward halving in May 2020 has been highly anticipated by investors, especially in the last several months of 2019, as it reduces the rate in which new BTC is produced.
Strong fundamental drivers supplement with bright technicals will be the basis of bitcoin’s next extended rally.
This article was edited by Samburaj Das.
Last modified: January 22, 2020 11:40 PM UTC