Cryptocurrency analyst Dave the Wave, known for his #Bitcoin (BTC) predictions, drew attention to a different point, arguing that the recent correction in the price of the largest cryptocurrency is beneficial for the long-term uptrend. The analyst added that if Bitcoin were to fall below $60,000, the possibility of a parabolic rally would disappear.

Longer Continuous Consolidation Signal

According to Dave the Wave, Bitcoin's current price action has been a healthy one, indicating a longer period of consolidation. The analyst believes that this consolidation phase will allow Bitcoin to establish a more stable base, triggering a stronger upward move later in the year. He highlighted that a high-hype market driven by an early parabolic surge may result in lower peak prices compared to a more controlled and stable growth market.

On the other hand, the analyst warned investors by adding that Bitcoin could drop to $50,000 and find support at the 0.382 Fibonacci retracement level. He emphasized that this decline would place Bitcoin back in the "buy zone" of the logarithmic growth curve (LGC) model

For those who don't know, this model is designed to predict Bitcoin's long-term cycle bottoms and tops by filtering out short-term price volatility. The analyst expects such a decline to put BTC into a renewed and solid uptrend.

Technical Indicators and Market Sentiment

Dave the Wave believes Bitcoin's recent price action below $60k is a signal for further consolidation. According to him, this consolidation is necessary for Bitcoin to rise strongly in the future and create a stronger foundation. The analyst said that a steady and gradual rise is preferable and more sustainable than a rapid and parabolic rise. This approach can enable the market to achieve higher prices more effectively at a later date.

At the time of writing, Bitcoin is trading at $60,686, above the critical $60,000 threshold, with a 0.25 percent decrease in the last 24 hours. As it is known, BTC dropped to $58,400 with its drop on June 24, and current prices correspond to a significant recovery.