Veteran cryptocurrency trader Tone Vays says that he’s identified the next crucial testing level for top crypto Bitcoin (BTC).
In a new strategy session, Vays tells his 118,000 YouTube subscribers that he expects BTC to face its “ultimate” test sometime in late December or early January.
“If the price of Bitcoin is sitting in [the $50,000 range] and it comes back down to $48,000 over the course of the next four or five days, that could be a good enough consolidation to then bounce right into [its] death cross…
I do expect the moving averages to cross sometime in very late December to early January, and that’s going to be the ultimate test for Bitcoin’s resistance.”
Though no official timeframes are set, an asset’s death cross forms when its short-term moving average dips below its long-term moving average, which is traditionally a bear signal. Vays notes that BTC’s death cross could happen somewhere in the $52,000 to $54,000 range.
Looking at BTC’s four-hour chart, Vays says that Bitcoin is forming a double top pattern, which to him is a sign of bullish momentum.
“The four-hour chart appears to have broken the MRI (momentum reversal indicator) resistance line, but it perfectly hit an MRI top on a four-hour [chart] just like it hit it [hours ago]. Look what happened after – the top has not yet been broken on an intra-candle level…
You know my rule on double tops: double tops are meant to be broken to the upside. The fact that we made it all the way up and matched [the second] top is a bullish sign.”
The MRI is a time-based chart indicator that attempts to anticipate a reversal of an asset’s price movements.
Bitcoin is exchanging hands at $50,704 at time of writing, a 10% increase from its seven-day low of $45,682.
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