Veteran Trader Says Bitcoin (BTC) Reaches Make-or-Break Moment, Warns of Dead-Cat Bounce
An experienced crypto trader says Bitcoin (BTC) is reaching a key moment in the cycle that could determine its fate in the short term.
In a new video update, veteran Bitcoin analyst, trader and bull Tone Vays says his 123,000 YouTube subscribers that BTC still looks significantly weak, and could be close to another capitulation.
“It still doesn’t look very good because we’re stuck at $17,000 and nothing’s going up yet. So we’re continuing to consolidate and frustrate the majority of people, which is one of the ways markets bottom.”
Vays says BTC is fighting a diagonal resistance line currently resting around the $19,000 level. According to the trader, a rally up to the resistance level, which has been in play since June, could be Bitcoin’s “make-or-break” moment.
The trader warns that BTC could be in the middle of a dead cat bounce, a term in technical analysis that refers to a brief rally after a dip that fakes traders before quickly falling further for another leg down.
“On a weekly scale, it looks like we’re still in the middle of a dead cat bounce to that area of the breakdown to $19,000. When we get to $19,000, that’s going to be the make-or-break area for Bitcoin . So Bitcoin has to go higher than $19,000 to reach $21,000.”
While many traders are worried about a bigger BTC dip to around $10,000, Vays says he’s not counting on it just yet. If such a crash were to occur, the trading veteran says it would be extremely short-lived.
“In reality, I personally do not expect Bitcoin to go below $10,000. If it does, I expect it to stay there for 10 minutes. And I’m 99.9% sure I won’t be able to buy it at that price, because either the stock markets will be down, or I won’t be sitting there with my finger on the mouse. So is it possible for Bitcoin to crash to $9,000, $8,000, $6,000?… Yes, it is possible, but there will be people lucky enough to buy it at those prices so quickly that it will recover very quickly .”
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Featured image: Shutterstock/Tetiana Kucherenko
