Seasoned trader Tone Vays says he’s looking at a fresh bear cycle low for Bitcoin (BTC) after it failed to sustain bullish momentum.
In a new strategy session, Vays says Bitcoin is now at risk of losing over 33% of its value from its current price after BTC went below the key breakout level of $21,500.
“If we get back into this channel, it creates a complete disaster for the price of Bitcoin. So I don’t want to see us enter this channel.
We can trade down with the 50-period moving average on the daily scale another day or two but that’s probably it. And after that, would need to rally back to the 128-day moving average, and at that point, it really needs to go back up. Otherwise, I’m going to put these low targets of $14,000 back on the table.”
At time of writing, BTC is changing hands for $21,104, down over 6% in the last 24 hours.
Looking at the weekly chart, Vays says he’s disappointed that Bitcoin closed below the 200-week moving average, an indicator that many traders view as a possible trend reversal area for BTC.
The trader also highlights the importance of Bitcoin staying above the $20,000 price level.
“The weekly chart is still pretty fragile. If we start trending back towards $20,000, all kinds of low-end targets are going to be back on the table. I still believe there’s a 60% chance the bottom is in. All of that goes away if we close below the $20,000 area.”
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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.
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