Seasoned trader Tone Vays outlines what needs to take shape for leading digital asset Bitcoin (BTC) to flip bullish as the crypto markets continue to react to global geopolitical instability.
In a new strategy session, the analyst tells his 120,000 YouTube subscribers that the top crypto asset by market cap has seen a three-month period where it continues to establish both lower highs and lower lows.
Vays says that BTC’s course won’t reverse until its weekly chart gets above both its short-term moving average and the previous high set by the last Bitcoin rally on February 10th.
”We’re still in a downtrend. I want to give you guys a nice rosy story with unicorns and rainbows and how we’re going to $100,000, but the charts are not confirming this yet. I’m sorry, they are not.
The weekly chart needs to get above the short-term moving average, and it needs to get above the prior swing high [$44,000]. Until it does that, we are in what is now a three-month trend of [setting] lower highs and lower lows…
Until this pattern breaks, I’m not going to be bullish on Bitcoin.”
Looking at the monthly chart, Vays says that Bitcoin has managed to recover the diagonal support of a large ascending triangle.
“We are back inside the triangle. We are off at the critical lows that would have closed the month below that moving average.”
Earlier this week, Vays predicted that Bitcoin will eventually break out of the triangle and print new all-time highs.
“In a world of inflation, in a world of tyrannical governments confiscating your money, Bitcoin will eventually break above this double top and break out above the double top with a vengeance. Remember the longer Bitcoin is depressed below $65,000, the more violent the move to the upside is going to be.
To me, this is pretty much a fact. When is it going to happen? I don’t know.”
Bitcoin is exchanging hands at $39,730 at time of writing, up 2.63% in the last 24 hours.
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