Veteran trader Tone Vays has outlined what needs to be done for leading digital asset Bitcoin to turn bullish as the crypto market continues to respond to global geopolitical uncertainty.
In a new strategy session, the analyst split BTC has made both lower highs and lower lows over the past 3 months.
Vays said BTC’s process will not reverse until the weekly chart breaks above both the short-term moving averages and the previous high from the last bitcoin rally on Feb. 10.
“BTC is still in a downtrend. I wanted to tell you an interesting story about unicorns and rainbows and how we got to $100,000, but the charts haven’t confirmed it yet.
The weekly chart needs to break above the short-term moving averages and the previous swing high ($44,000). Until then we are now in a 3 month low, high and low that sets the trend…
Until this pattern is broken, I will not be bullish on bitcoin.”
Looking at the monthly chart, Vays notes that Bitcoin is attempting to restore the diagonal support of the major ascending triangle.
“Bitcoin is back in the triangle. The price is bouncing off key lows that could end the month below this moving average.”
Source: Ton Vays
Earlier this week, Vays predicted that Bitcoin would eventually break out of the triangle and form a new ATH.
“In a world of inflation where totalitarian governments are confiscating your money, bitcoin will eventually break out and break out of those double tops. Keep in mind that the longer Bitcoin falls below $65,000, the more intense the bullish move will become.
For me that is the truth. But when will it happen? I do not know”.
The “definition time” for BTC
Investors who overcome fear, uncertainty, and doubt (FUD) and buy BTC now can reap tremendous rewards in the future, Bloomberg’s senior commodity strategist said.
In one interview Recently, analyst Mike McGlone discusses how current geopolitical events are affecting commodity markets, including the Russian invasion of Ukraine.
When asked why bitcoin hasn’t surged, although it’s often seen as a hedge against instability, but instead plummeted as news of Russia’s actions resonated around the world, the analyst said. “I know it’s because the commodity market largely corrected. He also said there are still buying opportunities.
“People should consider this for a lot of positions. This is a huge opportunity, especially for those with a little cash to spare.
We’ve been showing for months that the market is overdue for a sizeable correction, particularly in equities. Cryptocurrencies are also subject to this regulation.”
McGlone went on to say that Bitcoin and other cryptocurrencies are still risky assets, so investors should prepare for volatility. In his opinion, those who buy now can win in the future.
“I still think there is more pain there. I think bitcoin won’t drop much below $30k, holding resistance around $40k.
I think this will ultimately be a very good buying opportunity for Bitcoin. For long-term traders, this will be a defining moment in history.
The bottom line is that we’re at a stage right now where you have to bid on things that you might not want.”
Source: Mike McGlone
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