Veteran crypto trader Tone Vays warns that the recent price action of Bitcoin (BTC) is not encouraging.
In a new video, Vays tells his 121,000 YouTube subscribers that technical indicators suggest Bitcoin could be in trouble.
Beginning with the weekly candles, Vays says,
“This is an ugly-looking candle. Everything is starting to look nasty with a new low close. A new low close on a weekly level is very bad. Weekly swing low, lower than last week’s low, is also very bad.”
Vays continues by pointing out the Moving Average Convergence Divergence (MACD), which follows the momentum of two moving averages.
“As you can see, the MACD is very ugly.”
Vays then highlights the Relative Strength Index (RSI), measuring the speed and change of price movements. The RSI is considered overbought when above 70 and oversold when below 30.
“The RSI on a weekly chart is lower than it might have ever been. That might just be an all-time low on the RSI, that’s not good. I mean, there’s not much else for it to go but up, but technically it’s still a 25 or something so it’s not that terrible. It could go a little lower. It could get worse. There’s not going to be good news today. It’s actually all going to be bad.
Finally, Vays uses the Chalkin Money Flow (CMF) to look for trend direction by analyzing the weight-average of accumulation and distribution, usually over a 21-day period.
“The CMF might be at a historic low, that’s a historic low. I’m going to do my best to stay positive and find some good news. I really am going to try, but I’m probably going to fail.”
At time of writing, Bitcoin is trading for $20,052, down by 0.94% over the last 24 hours.
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