Bitcoin (BTC) Enters New Bullish Chapter, Analyst Says
According to Dave the Wave, a closely followed crypto analyst, Bitcoin (BTC) is entering a new bullish chapter.
He believes crucial long-term indicators have flipped green, signaling a bullish trend reversal. Dave the Wave marks six times in BTC’s history, including now, where the moving average convergence divergence (MACD) turned bullish before significant multi-week or multi-month rallies.
Weekly BTC MACD
In a tweet to his 137,000 followers, Dave the Wave pointed out the significance of Bitcoin’s weekly moving average convergence divergence (MACD) as a critical long-term indicator.
The MACD identifies trend reversals by recording the convergence or divergence of a given set of moving averages.
The weekly #btc MACD.
If I were a betting man….😎 pic.twitter.com/Hm5UzNr3tT
— dave the wave🌊🌓 (@davthewave) March 24, 2023
Pricing BTC in gold
Dave the Wave also suggests that another way to look at Bitcoin’s price performance is to price it in gold rather than US dollars. He posits that over about 20 years, BTC could reach the same market cap of gold, implying a 22X price increase.
He argues that mapping BTC against USD to give the LGC (logarithmic growth curve) is fine as long as prices move exponentially. However, strictly speaking, the LGC will only really plateau against XAU (gold).
READ MORE: Bitcoin: Analyst Predicts What Could be in Store for the Asset
BTC market cap
Dave the Wave estimates that a 22x increase in Bitcoin’s price would give it a market cap of 12 trillion USD [in 2023 terms], nearly equivalent to the current market cap of gold – $13 trillion.
He acknowledges that in the 2040s, the flagship crypto might be priced in a different currency, even if USD in name, so it is best to say that 1 BTC could equal 400 ounces [of gold].
Implications of a Bullish Trend
The emergence of bullish indicators and signals suggests that Bitcoin is entering a new phase. As BTC continues to gain momentum, it may see increased mainstream adoption and further legitimation as a store of value and hedge against inflation. This could lead to increased investment and adoption as more individuals and institutions take notice of the cryptocurrency’s potential.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
