Seasoned trader Tone Vays is notifying Bitcoin (BTC) traders, warning that the king crypto could be setting up for a big move.
In a new strategy session, Vays tells his 122,000 YouTube subscribers that technical indicators on the high timeframe charts are flashing bearish signals for BTC.
“The weekly chart looks actually pretty bad… Not only do we have a red star candle, which is bad according to the MRI, we also have a full weekly candle below all three moving averages. That’s also bad, especially the fact that we’re down below the 200-week moving average.”
Vays relies on the momentum reversal indicator (MRI) to spot possible changes in trend or trend continuation.
Looking at the daily chart, Vays says that BTC’s current market structure is reminiscent of Bitcoin price action between May and June this year when the king crypto plunged from $30,000 to below $20,000.
“We are in this gray zone of accumulation, and this is not good. You guys know that consolidations at the bottom create enviroments where prices drop. You saw this happen between May and June , and then we had the big catastrophic capitulation. Now, we’re back in the same zone, consolidating again.
If we start bouncing off of $19,000, there can certainly be a capitulation down to the $15,000 area.”
At time of writing, Bitcoin is swapping hands for $20,223, up nearly 3% on the day but still below the 200-week moving average.
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Featured Image: Shutterstock/Ana Aguirre Perez