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.”
oCheck Price Action
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/WhiteBarbie/Mia Stendal