Veteran trader Tone Vays is issuing a warning that Bitcoin (BTC) could soon undergo a much bigger market correction.
In a new video update, the seasoned analyst tells his 123,000 YouTube subscribers that Bitcoin could dip into the mid-$30,000 range if it fails to reclaim a key level.
“All signs are pointing to a much, much bigger correction. I hope this doesn’t happen. I really hope we go up from here. I don’t want to see us correct. We’ve already dealt with a huge bear market. However, I am going to remain on the sidelines with cash until Bitcoin breaks out above these moving averages. I need to break even the second moving average. I need $44,000. I need a daily close at $44,000 or a move to $36,000. I really need that to go long Bitcoin.
There could be something in between. It depends how fast or how slow we go down. It’s possible I may find a good buying opportunity down here at $39,000. But realistically, I am looking for either a move above the moving average of $44,000 or a move all the way down to $36,000 where we have a beautiful combination of the MRI (Momentum Reversal Indicator) support line on the daily chart, the 128-day moving average and the top of the channel.”
The trader also says that if Bitcoin soon dips below $40,000 that would not be comparable to the historic dips before pre-halving events, when miners’ rewards are cut in half. The next halving event is expected in April.
“Do I think the pre-halving dump has started? No, I wasn’t actually anticipating the pre-halving dump. The pre-halving dump usually happens a few weeks before the halving. It doesn’t happen four months before the halving.”
The trader predicts Bitcoin will not revisit the $20,000 range and would only retest the $30,000 level if there was some black swan event.
“I don’t see us going into the $20,000s. $30,000 is my absolute bottom low. And in order for us to even get to $30,000 something catastrophic happens.”
Bitcoin is trading for $43,222 at time of writing, up nearly 2% in the last 24 hours.
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