Former Bear Stearns risk analyst Tone Vays says he still believes Bitcoin (BTC) will likely suffer a major pullback before beginning another long-term rally. However, the recent price action has him feeling bullish in the near-term.
According to Vays, the big test is whether BTC can break past last July’s high of about $13,900. In the long run, if the king of crypto can reach its previous all-time high of about $20,000, Vays says he’s practically positive $100,000 will follow thereafter.
“As long as this week can close at above $9,000, I become a bull for February… Am I ready to declare a bull market? No. We have a lower high, we have a higher low, but we need a higher high.
I don’t mind buying Bitcoin [above $13,900]. I don’t mind buying Bitcoin here. Maybe I’ll sell my car. Maybe I’ll sell my apartment. I don’t know, I’ll think of something. I have zero problem buying Bitcoin at $20,000. I have no problem doing that because then I’m going to be 99% positive my Bitcoin is going to $100k. But I’m not willing to buy Bitcoin with an expectation that it’s going to fall 50%.”
Meanwhile, Scott Melker of TexasWest Capital says he agrees that despite BTC’s big month, it’s too early to celebrate.
He’s now waiting to see if Bitcoin can cross $10,540.
“Volume continues to rise. Today’s daily volume bar should greatly exceed yesterday’s. Price and volume rising together indicates a bullish trend…
Too early to celebrate, but it certainly appears like price consolidated against the channel resistance and has broken out on strong volume. The downtrend is likely broken. The real party starts above the red line with a higher high. That kills any bearish case.”
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