Bitcoin’s 365-day simple moving average (SMA) appears to be a key indicator of the market’s trend, according to veteran trader Dave the Wave. The current SMA is hovering at around $74,400, and many believe it may be the level where the cryptocurrency bottoms out for the fourth time since the bull market began.
Dave the Wave points to the 0.5 Fibonacci level as a potential entry point, which could coincide with the 365-day SMA. This area has historically been an important support level in the past, with Bitcoin experiencing significant rallies after reaching it.
The analyst notes that this correction is approximately 21% from Bitcoin’s all-time high and predicts a potential rally to $180,000 by the end of the year if a deep drawdown occurs. Despite fear gripping the markets, Dave the Wave remains optimistic about Bitcoin’s prospects, citing past performances as evidence that a strong correction could be the catalyst for a fresh bull run.
The trader’s prediction is in line with his previous statements, which suggest that a significant drop will set the stage for a major rally. With Bitcoin currently trading at $86,114, many are wondering if this is indeed the bottom of the market.
Source: https://dailyhodl.com/2025/03/02/heres-how-close-the-bitcoin-bottom-could-be-according-to-trader-that-called-last-market-cycle-top