Bitcoin cryptocurrency is threatened with a 38% drop in the near future

A trader known as Dave the Wave warns that bitcoin could experience a significant correction in the coming months.

The analyst told his 139,400 followers on the X platform that the market leader could fall to the bottom of its logarithmic growth curve (LGC) before the end of the year. (The LGC aims to estimate the long-term highs and lows of bitcoin over its life cycle, while ignoring short-term volatility — ed.)

«Within eight months, the price of BTC has risen twice as high as the lower boundary of the LGC buying zone. Would it be so terrible if the price consolidated 38% of that move over the next few months? Long-term investors should think about it,» the crypto expert says.

The analyst’s chart predicts that a 38% drop in BTC from this year’s high could lead to the price of the market’s flagship in December 2023 at around $ 24,000.

According to the trader, the LGC model shows that bitcoin has reached «a critical crossroads between resistance and support levels at its current value,» which indicates that «significant price movement is expected on the horizon.»

Dave Wave noted that bitcoin’s recent sideways trading is a «telling sign that the crypto king is developing» as a stable digital asset.

«The good news about all this anticipation due to the increasing stabilization of the [з макроперспективи] price is that BTC is becoming less volatile as it matures on its way to final price setting,» the crypto trader concluded.

At the time of writing, bitcoin is trading at $ 29,373. The total supply of coins on the market amounted to $ 571.5 billion, and daily trading transactions exceeded $ 12.3 billion, an increase of 17%. The market share of BTC is 48.8%.