Veteran trader Tone Vays is reversing his outlook on Bitcoin (BTC), no longer forecasting an imminent collapse as he had earlier this month.
In a new strategy session, Vays tells his 123,000 Youtube subscribers that he is now leaning bullish after Bitcoin and the crypto market traded higher in recent days.
Vays says that while Bitcoin had formed a descending triangle, the bearish pattern is not as severe as the one that BTC printed before the 2018 crypto collapse. He also says that BTC is flashing a bullish signal based on the momentum reversal indicator (MRI), an advanced script for professional traders that signals the end of trends based on the momentum in price action.
“The triangle is still a concern. On a weekly scale, we have a green star candle based on the MRI. I see there was a clash. While the triangle was bearish, the MRI was bullish. And as I’ve said many times, I don’t think this triangle is as dangerous as the one we had in 2018. So, I am starting to lean bullish a little bit.”
The crypto trader says his bullish sentiment is based on Bitcoin’s price closing above the key psychological area of $20,000.
“We are going to put in a 20% bullish allocation because the price is above two moving averages. They are rising; one is above the other, and I was waiting for us to establish some decent closes above the $20,000 area, and we are now at $20,600. I think that’s a decent place. We also have a high probability of breaking the next moving average on next candle with the short term, a few more candles in order to break the intermediate term. And these are all very good signs that the market could be reversing.”
Looking at Vays’ chart, the analyst appears to be predicting a strong Bitcoin surge to $30,000. At time of writing, Bitcoin is switching hands at $20,426.
I
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxGenerated Image: DALLE-2