A cryptocurrency trader who accurately predicted the May 2021 Bitcoin crash suggests that BTC might experience further declines before staging a significant recovery towards new record highs.

Dave the Wave, a pseudonymous analyst followed by 146,700 users on X, forecasts that Bitcoin could revisit the “buy zone” of his logarithmic growth curve (LGC) model as it seeks to establish a local bottom. The LGC model is designed to forecast major highs and lows in Bitcoin’s long-term cycles while smoothing out short-term market volatility.

Drawing parallels to Bitcoin’s price movement in early 2017, Dave suggests that a potential 40% correction, akin to the one observed then, could bring BTC down to around $44,000, aligning it back with the model’s trendline and the LGC buy zone.

Dave emphasizes that such a deep corrective phase could ultimately benefit Bitcoin, positioning it for a potential 400% rally towards his bullish price target of $220,000 by the end of 2025. He summarizes this outlook with the phrase “Short-term BTC pain, long-term gain.”

The trader notes that volatility, both upwards and downwards, is intrinsic to Bitcoin’s bull market trajectory, likening it to the unavoidable challenges along the path to ultimate success. Despite current fluctuations, Bitcoin is presently trading at $57,685, reflecting a modest daily increase of over 2%.

For further updates and insights, followers are encouraged to subscribe for direct email alerts from Dave the Wave’s channel on X. It is advised that investors conduct thorough research before engaging in high-risk investments in Bitcoin or other cryptocurrencies.

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Disclaimer: The opinions expressed in this article do not constitute financial advice. Potential investors are urged to perform their own due diligence prior to making any investment decisions in Bitcoin, cryptocurrencies, or digital assets. All trading activities involve risks, and any losses incurred are the sole responsibility of the investor.