The veteran crypto trader who nailed Bitcoin’s 2018 bear market collapse warns that BTC is setting up for another epic crash.
In a new strategy session, trader Tone Vays tells his 121,000 YouTube subscribers that Bitcoin is forming a descending triangle, a pattern that BTC also printed during the height of the 2018 bear market when the king crypto nosedived from $6,000 to around $3,000.
“This would be a potential triangle, and it actually is a triangle. It’s a nasty one. I don’t like it.”
According to Vays, a breach of the triangle’s horizontal support could drive Bitcoin to a level last witnessed in April of 2020.
“Based on this triangle, what is our projected move? We can take a look at the height of this triangle… That’s 60%… That takes us down quite a bit doesn’t it? Takes us down to $7,000. Yeah, that’s scary.”
While Bitcoin melting down to around $7,000 appears to be the technical target of the pattern’s breakdown, Vays says he doesn’t see BTC plunging even close to that level.
“So even though [$7,000] is the target of the triangle, I don’t believe we are going to achieve this target. A more realistic target is something like $11,000 to $12,000 range.”
At time of writing, Bitcoin is trading at $19,178. A correction to Vays’ realistic target represents a downside potential of about 40% for the leading crypto asset.
I
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
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 losses 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/Warm_Tail
