Seasoned trader Tone Vays believes that the latest Bitcoin (BTC) correction is giving bulls the chance to load up on the top crypto by market cap at discounted prices.
In a new strategy session, Vays tells his 123,000 YouTube subscribers that Bitcoin’s dip on Monday is largely a news-driven event.
According to the trader, investors got spooked by the news that the U.S. Securities and Exchange Commission (SEC) is suing crypto exchange Binance and its CEO, Changpeng Zhao.
“I still think this is a good buy-the-dip situation. This drop was a news-related event, and people just panicked a little bit because the SEC has joined the case.”
Following the correction, Vays says that Bitcoin’s daily chart now looks bearish as it is trading below a key moving average.
“The daily chart is looking very, very ugly. We have broken the 128-day moving average. This is one of my favorite moving averages. I don’t like the fact that we broke it.
If we go back above this moving average in the next 24 hours, then it will not matter. But if we don’t, there is some horizontal support at $25,000. Other than that, you have the long-term moving average at $23,500.
I would be surprised, I would be very surprised if we fall below $25,000.”
The 128-day moving average is currently hovering at $26,264. At time of writing, Bitcoin is worth $25,587.
Although Bitcoin is flashing signs of weakness, Vays says that he expects BTC to bounce in the coming days.
“I still think that we’re going to rebound any day, and go to the upside.”
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