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Veteran trader Tone Vays has said that Bitcoin (BTC) is approaching its make-or-break moment, warning investors of a ‘dead cat bounce’.
In a newvideo update, legendary cryptocurrency trader and analyst Tone Vays has said that the big crypto is approaching a critical moment in its cycle that could determine its near-term fate. Speaking to his 123,000 YouTube subscribers, the crypto bull opined that Bitcoin still looks considerably weak, and could be close to another fall.
In his words, “It is still not looking very good because we are stuck at $17,000 and nothing is rising yet. So we continue to consolidate and to frustrate the majority of people, which is one of the ways in which markets bottom.”
In the video, Vays analyzes that the BTC price is battling a diagonal resistance line that is currently resting at around the $19,000 level. According to his analysis, a rally up to this resistance level that has been in play since June could deliver Bitcoin’s “make-or-break moment.”
Vays says BTC Could Be in the Middle Of ‘Dead Cat Bounce’
Vays goes on to warn that Bitcoin could be in the middle of a “dead cat bounce.” The phrase “dead cat bounce’ is acontinuation pattern, where at first the bounce may appear to be a reversal of the prevailing trend, but it is quickly followed by a continuation of the downward price move. It becomes a dead cat bounce (and not a reversal) after the price drops below its prior low.
“On a weekly scale, it looks like we are still in the middle of a dead cat bounce to that area of the breakdown at $19,000. Once we get to $19,000 that is going to be the make-or-break area for Bitcoin, so Bitcoin must go higher than $19,000 to make it to $21,000.”
Source: Tone Vays
In his technical analysis, Vays interprets the ‘dead cat bounce’ as a brief rally following a dip that fakes out traders before quickly dropping further for another leg down.
Another Bitcoin Dip Would be Short-Lived
While most traders are concerned about a more catastrophic Bitcoin dip potentially to the $10,000 low, the trading veteran says he is not counting on it yet. In his opinion, the occurrence of such a crash is highly unlikely, and if it so happens, then 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.”
Vays also added that he is 99.9% certain that if the $10K dip happens, he would not be able to buy it at that price, citing the dip would be catastrophic, so much so that “the exchanges will be down,” and adding that he will not be sitting at his desk with his finger on the mouse.
Nevertheless, the seasoned trader acknowledges the possibility of Bitcoin to flash crash to $9,000, $8,000, and even as low as $6,000 noting that there will be people lucky enough to buy the flagship crypto at those prices so fast that it will rebound almost immediately.
About Tone Vays
Tone Vays is a former Wall Street Quant with an MS in Financial Engineering.Since his foray into Bitcoin, he has been educating people on his YouTube Channel about the importance of this unique financial technology and prides himself on being a bitcoin and blockchain consultant, traditional derivatives trader, and financial educator.
With 10 years experience on Wall Street in the field of Risk Analysis and Trading, Vays is now fully committed to the Bitcoin space as an opinionated blogger, trader, and frequent speaker at Bitcoin-related conferences.
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