The parabolic peak model and technical formula: Can Bitcoin drop down to $50,000?

A well-known technical analyst within the crypto community has recently made an interesting prediction about the future price of BTC. With an accurate Bitcoin forecast record from previous years, Dave the Wave is now warning of a significant decline scenario for Bitcoin if the market reverts to a downtrend.

Logarithmic Growth Curve (LGC) Model Analysis and Price Scenarios

According to this expert’s analytical formula, Bitcoin could fall below the lower boundary of the logarithmic exponential growth curve – meaning BTC could lose more than 46% of its current value. The LGC model is designed to identify potential peaks and troughs in Bitcoin market cycles, while also reducing the impact of short-term volatility.

In detailed comments, Dave the Wave suggests that the $70,000 level could serve as a strong support zone; however, if a “pressure shock” occurs in the market, Bitcoin’s price could test below this level. Based on his technical chart, Bitcoin could dip to around $50,000 during a market correction phase.

MACD Indicator Outlines a Relatively Stable Outlook

However, based on the Moving Average Convergence Divergence (MACD) indicator – a tool measuring momentum changes in price – the analyst believes Bitcoin is unlikely to experience a decisive drop in the near future. The weekly MACD currently shows no signs of being overly stretched upward, so it’s unlikely to be excessively pulled downward either. This suggests a more technically stable market, avoiding sudden parabolic peaks.

The analyst concludes that the actual support zone is more likely to be higher than the general forecast of $70,000, indicating significant buying interest at these levels.

Resistance at $110,000 is the Key to Confirming an Uptrend

On the bullish side, if Bitcoin surpasses the resistance level of $110,000, it will clearly confirm an upward market trend and open the door for further increases. A technical move above the $110,000 threshold would undermine the plausibility of a prolonged correction scenario.

Current Situation

Bitcoin is currently trading around $90.61K, indicating a market in transition. The price remains far from both key levels – support at $70,000 below and resistance at $110,000 above – creating a relatively wide range for investors and traders to observe upcoming signals.