Benzinga - In the wake of last week's unexpected Bitcoin (CRYPTO: BTC) price drop, pseudonymous crypto analyst Dave the Wave remains optimistic about the cryptocurrency's trajectory.
Bitcoin is still primed for a significant bull cycle, he argues, cautioning crypto enthusiasts against being swayed by short-term indicators that might imply any loss of support.
"Price is right where it should be in terms of the LGC, the Gaussian channel, and in terms of a normal consolidation after a solid run-up," he emphasized.
The analyst further elaborated on the diminishing significance of certain metrics, such as the 200 MWA (Moving Weekly Average), as the crypto market matures.
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"Why would the #Bitcoin 200 MWA remain a support of price?" Dave the Wave asked his more than 139,000 social media followers.
If the overarching trend is one of decreasing volatility and diminishing returns, the 200 MWA would eventually serve as a mean around which the price oscillates, he explained.
'Dave' also hinted at the potential upward movement of Ethereum (CRYPTO: ETH) against the U.S. dollar.
"Waiting and watching," he noted. "Weekly Gaussian about to turn up on ETH/USD."
Reflecting on his previous successful position trade, Dave the Wave expressed anticipation for another promising opportunity, albeit expecting it to be less volatile this time around.
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