Experienced trader Tone Vays warns that Bitcoin (BTC) could soon undergo a much bigger market correction.
The seasoned analyst explains in a new video update tells According to its 123,000 YouTube subscribers, Bitcoin could plunge towards the mid-$30,000s if it fails to regain a key level.
“All signs point 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 at the same time. We’ve already faced a massive bear market. However, I will remain on the sidelines with cash until Bitcoin breaks above these moving averages. I need to break the second moving average. I need $44,000. I need a daily close of $44,000 or a move to $36,000. I really need that to go long in Bitcoin.
There could be something in between. It depends on how fast or how slow we go down. It’s possible I’ll find a good buying opportunity here at $39,000. But realistically, I’m looking for a move above the $44,000 moving average, or a move all the way 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 falls below $40,000 soon, it would not be comparable to the historical dips before the halving events, when miner rewards are halved. The next halving is expected in April.
“Do I think the dump started before the halving? No, I actually didn’t expect the dump to happen before the halving. The pre-halving dump usually takes place a few weeks before the halving. It doesn’t happen four months before the halving.”
The trader predicts that Bitcoin will not revisit the $20,000 range and will only retest the $30,000 level if a black swan event occurs.
“I don’t see us going to $20,000. $30,000 is my absolute low. And before we can even make $30,000, something catastrophic happens.”
Bitcoin is trading at $43,222 at the time of writing, up almost 2% in the past 24 hours.
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