Tone Vays, a veteran trader, has issued a warning about Bitcoin (BTC), stating that he anticipates a decent correction for the cryptocurrency king in the near future.
In a new strategy session, Vays informs the 123,000 subscribers who follow him on YouTube that it is “very likely” that Bitcoin will print a negative signal on the momentum reversal indicator (MRI) that is displayed on the daily chart.
An advanced metric for technical analysis, known as the momentum reversal indicator (MRI), the momentum reversal indicator predicts trend life cycles by using an asset’s momentum. In the next twenty-four hours, according to Vays, there is a possibility that Bitcoin may have a temporary upswing before giving up some of its gains.
“As of right now, I am expecting for a little bit more upside till Monday, and we are going to be reaching $31,500 on Monday, and then here comes the one to four candle pullback, which could potentially lead to something deeper… Where do I believe it may possibly end up? In any case, I believe that it is possible to get it down to this line ($29,000). That seems like a sensible amendment to make…
From a starting point of say $31,500 or $32,000, dropping down to $29,000 may take more than four days. We could get an MRI top into an MRI bottom, and then we could rally off of that if it takes longer than four days.
His “bullish pessimistic scenario” calls for a decline in Bitcoin prices to levels around $29,000, as stated by Vays. In the longer run, he believes that the dip in Bitcoin’s price would likely position the cryptocurrency king for a rebound toward $34,000. According to Vays’s optimistic scenario, the price of bitcoin may see a brief correction to the region around $30,000 before it resumes its general upward trajectory.