Veteran trader Dave the Wave says that a massive Bitcoin (BTC) melt-up is possible given the technical setup for the flagship cryptocurrency.
The pseudonymous trader tells his 153,100 followers on the social media platform X that BTC can soar above $150,000 in the next 30 days.
“A BTC run to $160,000 next month technically feasible…”
Based on his chart, Dave the Wave is looking for BTC to hold an ascending support line and then rally toward the diagonal resistance level at the top of a channel that has been intact since early 2024.
The trader is also bullish on altcoins and thinks that Bitcoin dominance (BTC.D) may be in the process of breaking down to much lower levels.
According to Dave the Wave, BTC.D, which compares the market cap of Bitcoin to that of the entire digital asset market and is often used as a gauge for altcoin strength, has broken support near the 60% level and has a ways to fall before its next major support level near 54%.
A bearish BTC.D chart indicates that altcoins are gaining value faster than Bitcoin. At time of writing, BTC.D is hovering at 60.7%.
Last month, the trader accurately forecasted that Bitcoin was printing a cup and handle, or a bullish continuation pattern on the weekly chart, suggesting that a breakout surge was in sight for BTC.
With the rally already unfolding, Dave the Wave is targeting the $160,000 mark in the coming months, and potentially higher prices later on.
“BTC cup and handle anyone….?
Some calling it an inverse head and shoulders [pattern], which is a possibility I sketched months ago. But if so, a veeeery weak right shoulder… And a weaker ‘shoulder’ makes sense at the top where the market is more bullish. A conventional inverse head and shoulders is usually to be found at the bottom of a market, not at the top. This is why I prefer to call it a cup and handle, a pattern often found at the top.”
At time of writing, Bitcoin is trading at $122,047.
Generated Image: Midjourney