Experienced analyst and trader Tone Vays has warned that investors in the largest cryptocurrency, Bitcoin (BTC), could soon face a sharp correction. The analyst listed the levels he is closely watching in BTC.
He Gave Critical Levels for Bitcoin
In a new video update, Vays told his YouTube subscribers that Bitcoin could fall to the mid-$30,000s if it fails to reclaim an important level. In his bearish commentary for BTC, he said, “All arrows point to a much, much bigger correction. I hope this doesn’t happen. I hope we go up from here. I don’t want to see a correction. We are already facing a big bear market. However, I will be waiting on the sidelines with cash until Bitcoin breaks above these moving averages. It needs to break and surpass an important moving average to rise. In short, I want to see the $44,000 surpassed. We will either see a daily candle close above $44,000 or a drop to $36,000.”
Furthermore, Vays suggested that the $39,000 level could be a good buying opportunity but claimed that the best buying point would be $36,000, stating:
“We could also stop at some point between $44,000 and $36,000. This depends on how fast or slow we fall. I consider $39,000 to be a good buying opportunity, but realistically, I expect either a move above the moving average of $44,000 or a pullback to $36,000, where we have a nice combination of the Momentum Reversal Indicator (MRI) support line, the 128-day moving average, and the top of the channel.”
He Reiterated His Expectation of a Crash Before the Block Reward Halving
On the other hand, Vays emphasized that a drop below the $40,000 level for Bitcoin would not be the crash he expects before the upcoming block reward halving, saying, “I don’t think such a drop before the block reward halving would be the crash I’m expecting. The crash before the halving usually happens a few weeks before the event. There are about four months left until the halving. It’s not very likely to happen now.”
The analyst stressed that he does not expect Bitcoin to revisit the $20,000 range and only anticipates a retest of the $30,000 level in the event of catastrophic news, saying:
“I don’t expect a drop to the $20,000 level. $30,000 is my bottom line, and even for it to drop to $30,000, there needs to be disastrously bad news.”
