As the crypto market remains volatile, a major correction for Bitcoin could be looming in the near future. Renowned trading expert, Tone Vays, has issued a warning to his followers regarding an impending market shift. According to Vays’ technical analysis, a bearish signal on the momentum reversal indicator (MRI) indicates an imminent drop in the value of the world’s largest cryptocurrency. In his latest YouTube video analysis, Vays has revealed his predictions about the upcoming correction and the potential impact on the crypto market.
If you’re invested in Bitcoin or other cryptocurrencies, you don’t want to miss this critical update. Read on!
A Brief Rally Followed by a Correction
The MRI is a sophisticated technical analysis metric that forecasts trend life cycles based on an asset’s momentum. Vays suggests that Bitcoin might experience a short-lived rally within the next 24 hours before losing some of its gains. He anticipates a slight increase in value until Monday, possibly reaching $31,500, followed by a one to four-candle correction that could potentially lead to a deeper decline.
Also, the expert believes that a drop to the $29,000 level would be a reasonable correction, which might take longer than four days if the BTC price decreases from around $31,500 or $32,000. If the correction takes more than four days, the MRI top could turn into an MRI bottom, followed by a subsequent rally.
Short-term Retracement Sets Stage for a Rally
According to Vays, the short-term retracement in Bitcoin’s value to the $29,000 level is his “bullish pessimistic scenario.” He also predicts that this temporary decline in Bitcoin’s value will likely pave the way for a rally toward $34,000. In his optimistic scenario, he envisions Bitcoin only correcting down to the $30,000 price area before resuming its upward trend.
Analysts’ expectations of a short-term support retest have come true as the biggest cryptocurrency begins the week below the $30,000 barrier. At the time of writing, one bitcoin was valued around $29,922. In an otherwise quiet week for macro data releases, the price of the king of cryptocurrencies is likely to decide on a critical support zone.
Altcoins Under Scrutiny
With Bitcoin’s retracement now in effect, traders are eager to see if altcoins can maintain their higher levels. The previous week provided an opportunity to reevaluate altcoins as Bitcoin’s upside cooled.
Related: Altcoins To Explode – How High Will The Crypto Rally Go in This Bull Market? – Coinpedia Fintech News
Despite the current price performance, Bitcoin’s network fundamentals, which are already at or near all-time highs, show no definitive signs of a decline this week. It may be too early to determine the impact of price performance on HODLers, but the temptation to sell at ten-month highs is undoubtedly strong, as an impressive 75% of the overall BTC supply is now in profit.
Tone Vays is predicting a correction on the horizon. Will this prompt you to change the way you’re investing in Bitcoin right now?
Source: https://coinpedia.org/altcoin/crypto-market-shift-on-the-horizon-expert-warns-of-upcoming-bitcoin-correction/