Veteran trader Tone Vays is issuing a warning, saying that Bitcoin’s (BTC) unprecedented run is likely coming to an end.
In a new video update, the seasoned analyst tells his 123,000 YouTube subscribers that he expects the crypto king to dip in January, right around the time the U.S. Securities and Exchange Commission (SEC) is slated to approve or deny bids to create spot market BTC exchange-traded funds (ETFs).
[adinserter block="1"]According to Vays, no matter what the SEC decides, he envisions a “sell-the-news” type of event for the top crypto asset by market cap.
“I’ve been looking for a top in the $48,000 range, sometime in mid-January in line for their next rejection of the Bitcoin ETF.
Even if the Bitcoin ETF is not rejected, I still expect it to be a sell-the-news event, not a buy-the-news event. So either way, if Bitcoin is reaching this next Fibonacci line (0.618) and the $48,000 price level sometime early to mid-January, I will see that as a near-term top and anticipate a pullback on the SEC news.”
According to Vays, the SEC’s decision will be a sell-off event for BTC due to its big price surge this year. However, he notes that the SEC’s choice could still spark a rally, but only if the flagship digital asset crashes to around the $35,000 level beforehand.
“The reason why it would be a sell-the-news event is because Bitcoin has been on an unprecedented run this year. Bitcoin is up 200% this year. After a 200% run-up, it’s time for a proper pullback…
I would consider this to be a sell-the-news event if Bitcoin is at the top ($48,000).
Remember, we can start crashing tomorrow and Bitcoin could be sitting at $35,000-$36,000 by mid-January, in which case, I’m going to consider good news from the SEC very, very bullish for the price of Bitcoin if Bitcoin is sitting at $36,000. But if Bitcoin is sitting at $48,000, I’m going to consider that a sell-the-news event.”
Bitcoin is trading for $43,172 at time of writing.
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