Veteran Bitcoin trader Tone Vays says BTC techniques are worrying as the leading cryptocurrency continues to struggle to find support below $50,000.
Analyst draws attention to 50-week MA line in Bitcoin (BTC)
In his recent YouTube post, Vays points out that Bitcoin is threatening to close below the 50-week moving average (MA). The veteran trader remembers that when BTC last broke below the 50-week MA, it touched the 200-week MA, which is currently roughly $20,000. Here are Tone Vays’s expectations:
If we break this moving average (50-week MA), it will be necessary to evaluate the 200-week moving average… And that gets us down to $20,000. He knows it may be bad in a way, but there is a positive side. If we manage to get out of here, will it be a massacre? There will be carnage mostly on small-volume altcoins!
The analyst looks at the pandemic-induced market crash in March 2020 and says that the 200-week MA acted as a major support that quickly pushed the BTC price to new highs:
There will be major panics, but also look at how the 200-week period has brought Bitcoin price to ATH levels perfectly. So resetting this market to the 200-week moving average – I wouldn’t say good – but it will be bad too.