Veteran Bitcoin trader Tone Vays says he’s not liking BTC’s technicals one bit as the king crypto continues struggling to find support below the $50,000 mark.
In a new strategy session, Vays points out that Bitcoin is threatening to take out the 50-week moving average (MA) and close below it.
The trader recalls that the last time BTC collapsed below the 50-week MA, it went all the way down to touch the 200-week MA, which is currently 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 looks at the pandemic-induced market crash of March 2020 and says that the 200-week MA acted as massive support that rebounded the price of BTC quickly 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 trader is still prepared for the worst, he still thinks the bottom for Bitcoin is much closer 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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