Veteran Bitcoin dealer Tone Vays says he’s not liking BTC’s technicals one bit because the king crypto continues struggling to discover help beneath the $50,000 mark.
In a brand new technique session, Vays factors out that Bitcoin is threatening to take out the 50-week shifting common (MA) and shut beneath it.
The dealer remembers that the final time BTC collapsed beneath the 50-week MA, it went all the way in which down to contact the 200-week MA, which is at the moment roughly at $20,000.
“If we break this moving average I would need to bring the 200-week moving average in… And, well, that’s not good, is it? That takes us down to the $20,000 mark. Now in a way that’s bad but in a way that’s actually really good. In a way, if we do make it here, oh boy is there going to be a massacre. Mostly in the sh*tcoin space, there will be a massacre.”
Vays appears to be like on the pandemic-induced market crash of March 2020 and says that the 200-week MA acted as large help that rebounded the price of BTC rapidly up to new highs.
“There will be huge panics, but also, look at how the 200-week perfectly bounced the price of Bitcoin to eventual new all-time highs. So resetting this market to the 200-week moving average would be – I’m not going to say good – but it’s going to be bad either.”
While the dealer remains to be ready for the worst, he nonetheless thinks the underside for Bitcoin is far nearer than $20,000.
“I don’t believe this is a likely scenario, I still believe we are going to bounce somewhere [Near $40,000] without breaking the prior swing low.”
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