Veteran trader Tone Vays says Bitcoin (BTC) needs to finish the week strong or it risks experiencing another liquidation candle.
In a new strategy session, the seasoned crypto analyst tells his 119,000 subscribers that he remains optimistic about Bitcoin’s chances of recapturing the $49,000 level, but the clock is ticking for the king crypto to make a move to the upside.
“I am still optimistic for the current month that we’re going to rally back into the triangle and possibly above the short-term moving average, which means we have to close the month above or very close to $49,000.
I believe that’s possible, but the month only has 10 days left. So Bitcoin better get a move on in the next 48 hours, or that is not likely to happen.”
Vays digs into the weekly chart and highlights the miner’s rolling inventory (MRI). This metric gauges sentiment among Bitcoin miners where a percentage above 100 means miners are net-selling their newly minted BTC, whereas a sub-100% number means miners are hoarding their fresh BTC.
“The weekly chart is technically still looking bullish off of the MRI, and only bullish off of the MRI. By all the metrics, it’s actually pretty bearish.
We need this week to be positive, otherwise, Bitcoin is in trouble.”
The analyst concludes by looking at Bitcoin’s previous two big selloffs which began on December 27th and then again on January 5th. He’s concerned that even if Bitcoin climbs back to $44,000, it might soon capitulate back below the $40,000 support.
“Bitcoin is in trouble, and if it stays here a couple more days [approximately $41,722], then I believe a repeat of what happened last month and early this month is very, very possible.
[It could reach] $44,000 in the next week, then it’s very likely to take another leg down to about $38,000 or lower.”
Bitcoin is currently up 1.53% on the day and trading for $42,272.
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Featured Image: Shutterstock/Bushko Oleksandr/Chuenmanuse
