Experienced crypto analyst and trader, Tone Vays, suggested that despite the largest cryptocurrency’s leap last week, Bitcoin (BTC) remains in the bear region. Here’s Vays’ forecast for BTC and the level he advises monitoring closely.
“Bitcoin Must Surpass $27,000”
Crypto analyst Tone Vays claimed in his latest strategy session that the recent surge in Bitcoin was not sufficient to ignite a new uptrend. According to the crypto analyst, BTC appears to be in a downward trend after retesting a significant moving average as resistance on the daily chart:
Yes, it’s a nice rally, but this nice rally doesn’t mean a bullish trend on a weekly chart. It just doesn’t look very bullish. The price still appears to be in a downward trend, even if this rally and the daily (chart) are the same. It rallied very nicely towards resistance. Let’s see if it can break through both moving averages. It will have to break both moving averages to exit this channel.
Vays stated that for BTC to convincingly start a new uptrend, it needs to exceed several resistance levels. He added, “To take the rise seriously, Bitcoin really needs to rise above $27,000. To even take the Bitcoin bull market seriously, it might even need to break the previous high at $28,000.”
Warned Against Downside Risk
The crypto analyst underscored that unless Bitcoin crosses the $27,000 resistance and converts it to support, the bounce is likely to be short-lived. He mentioned, “It’s a beautiful rally, but from a technical analysis perspective, it’s nothing more than a bounce from the $25,000 support. It hasn’t shown any bullish signs yet, and it needs to rise above $27,000 to show that.”
At the time of writing, Bitcoin, the largest cryptocurrency, is trading at $26,442, showing a 0.39% drop in the last 24 hours. Over the weekly timeframe, BTC’s value increased by 2.07%.
