Veteran crypto trader Tone Vays is warning that BTC’s moving averages are flashing signs of potential catastrophe in the coming months.
In a new YouTube update, Vays tells his 120,000 subscribers that Bitcoin’s seven-month moving average is in danger of dipping below the 20-month moving average.
Historically speaking, such crossovers have led to major losses for the leading crypto by market cap, according to Vays.
“We want to avoid this moving average crossover. The only way to avoid this moving average cross-over is for the prices to rise back above the short-term moving average, which is approximately $50,000 either in the current month or next month. That’s the only way we can avoid the upcoming moving average cross-over, which should be avoided.”
The trader says the last time the seven-month moving average dipped beneath the 20-month moving average, Bitcoin lost half of its value.
“The last time these two crossed over, the price of Bitcoin fell over 50%. You don’t want that. And we went all the way down to the next moving average. We can have a repeat of that if the price of Bitcoin is still hovering around $40,000 going into May as these moving averages crossover.”
Looking ahead, Vays warns fellow traders that a 50% price cut to Bitcoin may be in the realm of possibilities, though it will likely be followed by a bull market.
“I would not be surprised at all if we end up with a repeat of November 2018 when the big catastrophic fall down from $40,000 to $20,000, and then start our new bull market.”
Bitcoin is trading at $38,544.33 at time of writing, up 4% on the day.
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