A market analyst who accurately predicted Bitcoin’s dramatic drop in May 2021 now suggests that BTC could experience further declines before embarking on a fresh rally towards record highs.

Known as Dave the Wave among his 146,700 followers on the social platform X, this pseudonymous analyst anticipates that Bitcoin might retest the “buy zone” of his logarithmic growth curve (LGC) model before establishing a local low. The LGC model is designed to forecast Bitcoin’s longer-term peaks and troughs while filtering out short-term market fluctuations.

Drawing parallels to Bitcoin’s price movements in early 2017, Dave suggests a potential 40% correction akin to the one observed during that period. Such a pullback, just above the 0.38 Fibonacci level, could see Bitcoin revisiting $44,000, aligning it back with the trendline and the LGC’s buy zone.

Dave the Wave emphasizes that this significant correction could ultimately benefit Bitcoin in the long run. He projects that such a downturn could position BTC for a subsequent 400% surge towards his bullish target of $220,000 by the conclusion of 2025, reinforcing his belief in “short-term BTC pain, long-term gain.”

The analyst underscores that volatility is an integral aspect of Bitcoin’s bullish trajectory, advising investors to accept both the ups and downs of the market. “BTC enthusiasts must weather the storm, though technically still in a bull market,” he asserts. “Confidence in ultimate victory must coexist with the challenges along the way.”

As of the latest update, Bitcoin is trading at $57,685, reflecting a modest daily gain of over 2%.

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