Trader Predicts 400% Bitcoin Rally Following Correction, Says Short-Term BTC Pain Could Lead to Long-Term Gain

A trader who nailed the May 2021 Bitcoin collapse believes BTC could see more downward price action before igniting a renewed rally en route to new all-time highs.

Pseudonymous analyst Dave the Wave tells his 146,700 followers on the social media platform X that BTC may revisit the “buy zone” of his logarithmic growth curve (LGC) model before carving a local bottom.

The LGC model aims to predict Bitcoin’s longer-term cycle lows and highs while filtering out shorter-term volatility.

According to the analyst, BTC may be mirroring its early 2017 price action when it witnessed a 40% correction before launching a parabolic surge.

“A similar 40% drawdown just north of the 0.38 Fibonacci level would see $44,000…. with BTC price back to the trendline and the LGC buy zone.”

Source: Dave the Wave/X

Dave the Wave highlights that the deep corrective move will be beneficial for Bitcoin over the long haul. According to the trader, the drawdown would put BTC in a position to rally by 400% toward his bull market price target of $220,000 by the end of 2025.

“Short-term BTC pain, long-term gain.”

Source: Dave the Wave/X

The trader highlights that downside volatility is part and parcel of a Bitcoin bull market.

“BTC’ers got to take the good with the bad… still technically in a bull market… Though one might be confident of the final victory, there can also be a hammering along the way.”

At time of writing, Bitcoin is trading for $57,685, up over 2% on the day.

Generated Image: Midjourney

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