Veteran crypto trader Tone Vays is updating his forecast for Bitcoin as BTC weathers what he says is some “nasty” price action.
In a new strategy session, Vays says that Bitcoin, which is currently 42% down from its all-time highs, is on the edge of going lower once more as support levels are breached.
“It couldn’t rally much. It got back to that same area of support ($40,000), rallied even less, and then the total breakdown. This is a very nasty breakdown. The next low that we have is down here, and if we approach this low, I think it’s going to go down and go down hard.”
Vays says that a convincing close below the $39,500 level would solidify his bearish outlook in the near future.
Adding to Bitcoin’s troubles is the Lucid SAR indicator, a variation of the parabolic SAR which combines price and time to calculate trends and spot entry and exit points. According to Vays, the Lucid SAR is about to flip bearish on BTC.
“There’s your line. If the price of Bitcoin closes today below $39,500, I would be incredibly bearish going into the weekend and into next week, and into next month even. It’s a very, very bad sign because the four-day chart would also be fully bearish, and the weekly chart would also be fully bearish. And we are likely to break the Lucid SAR next week. All kinds of bad is about to happen if Bitcoin drops below $39,500.”
At time of writing, Bitcoin is changing hands at $39,099.
IDon't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
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/prodigital art