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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