Wall Street veteran and crypto analyst Tone Vays says Bitcoin is setting the stage for a larger correction.
In a new strategy session, Vays tells his 104,000 YouTube subscribers that he believes BTC is set to rally in the short term but may face a big sell-off after.
The Wall Street trader says the momentum reversal indicator (MRI), an indicator that predicts the end of a trend based on price momentum, is already flashing signs that BTC has bottomed out for now.
“The current candle is looking very promising. That is a beautiful reversal candle even though I like seeing more candles of a trend before considering reversal candles but that is still a nice candle. We have already reset the MRI count so we will have a brand new MRI count to the upside if this thing keeps going.
I believe the correction has ended… I am calling it right here on live air that I believe we are now going to be bullish.”
As Bitcoin has managed to regain its bullish momentum, Vays believes that the leading cryptocurrency is now poised to print a new all-time high above $72,000 in coming weeks.
After the climb, however, Vays expects BTC investors to take profits en masse.
“If we do close this week at or right near a new weekly closing high, we are back on track for the third consecutive MRI top. Once this third consecutive weekly MRI top comes into play, I believe a bigger correction will follow. It would be awesome if this weekly MRI top in two and a half weeks would coincide with a fresh new daily MRI top.”
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