Veteran crypto trader Tone Vays is analyzing Bitcoin’s path amid a sharp and sudden downturn in the crypto markets.
In a new strategy session, Vays says he’s looking to see if the top crytocurrency can bounce back in a hurry.
Vays likens today’s Bitcoin dump to the ones on May 19th of this year and March of 2020 during the onset of the Covid-19 pandemic. However, he still thinks there’s a possibility that BTC reverses and forms a hammer candle, which is typically interpreted as a technical sign that an asset has bottomed and is ready to reverse.
“I’m pretty sure today reminds people of some of these days, like May 19. And of course, you have to go all the way back to the Covid stuff of March 2020, when we had that big catastrophe of going form $8,000 down to $3,000…
I think this going to be the hammer, it’s just not going to be green candle, it will be a red candle. I can certainly see us closing above $49,000, if not at $49,500, creating a massive hammer candle…”
If BTC can’t claw its way back and close the day above the $50,000 level, Vays expects a short-term period of consolidation.
“We either need to reverse immediately and go to $55,000, like this week. Or, the [recent] top is already played out. Then I would be expecting consolidation…
I would not be surprised if we go back up and close above $50,000, and if we go back up and close above $50,000, that is incredibly bullish. That is so fricking bullish because what that means is, all of the people that went in bullish with leverage thinking they’re going to make a sh*t ton of money, just got fricking crushed and liquidated and caused their stop losses, and now they’re scared to be bullish again.
And that creates open air for Bitcoin to go further bullish. The higher this candle closes today from this point on, the more bullish I am for the next two weeks. So if this candle goes all the way back up and closes above $50,000, we’re probably going to be at $60,00 in a week or two.”
At time of writing, Bitcoin is trading at $46,554, down 8% on the day, according to CoinGecko.
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