According to KOL Tone Vays, BTC needs to hold above this level to avoid a sharp drop

Veteran analyst Tone Vays says BTC technical signals aren’t looking good right now as the crypto king continues to struggle to find support below the $ 50,000 mark.

In one Video Newly, Vays advises that Bitcoin is challenging the strength of its 50-week moving average (MA) and threatens to close below it.

The analyst recalled that the last time BTC fell below the 50-week MA, it fell to the 200-week MA, which is currently at $ 20,000.

“If Bitcoin breaks this moving average, I’ll have to add the 200-week moving average to the chart … that’s not good, is it? This move can bring BTC down to $ 20,000 and Sh * tcoin will have a major massacre. ”

BTC / USD weekly chart | Source: TradingView

Looking at the market crash caused by the March 2020 pandemic, Vays says the 200-week MA acted as vital support, helping BTC quickly rebound to new all-time highs.

“There will be a lot of panic but you can watch the 200 week MA take Bitcoin to a new all time high, everything is perfect. So it may not be a good thing that BTC falls on this MA, but in the long run it has to be bad. ”

As the analyst prepares for the worst, he still believes that Bitcoin’s bottom is much closer to $ 20,000.

“I don’t think this is a likely scenario, I still believe that BTC will rebound somewhere near the swing lows ($ 40,000).”

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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