Veteran Trader Tone Vays Says Bitcoin (BTC) Pullback Below $20,000 Now ‘Very, Very’ Unlikely

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Sea­soned trad­er and ana­lyst Tone Vays says that a Bit­coin (BTC) pull­back below the key psy­cho­log­i­cal area of $20,000 is now unlike­ly to transpire.

Vays tells his 123,000 YouTube sub­scribers that the chances of Bit­coin falling below $20,000 has been dras­ti­cal­ly reduced after BTC ral­lied above $22,000 today.

If [Bit­coin] goes back above yesterday’s swing high [$21,650], I think going sub $20,000 now becomes very, very, very unlikely.”

Look­ing at the week­ly chart of Bit­coin, Vays says that one indi­ca­tor sug­gests that BTC has more upside poten­tial in the long term.

“The RSI [rel­a­tive strength indi­ca­tor] is very, very good. The RSI has plen­ty of room to the upside. It has not even bro­ken its pri­or swing high. So the week­ly RSI is still bare­ly bullish.”

The RSI is a momen­tum indi­ca­tor traders use to spot poten­tial rever­sals in trend or trend continuations.

Vays also believes that Bit­coin has like­ly print­ed its bear mar­ket bot­tom in Novem­ber when BTC plunged below $16,000.

“The fund­ing rate told you that ‘Hey, this is prob­a­bly the bot­tom,’ just because of the Bit­MEX fund­ing rate… Their fund­ing rate is actu­al­ly an amaz­ing indi­ca­tor. To me, this indi­cat­ed that the low is like­ly in, not def­i­nite­ly in, but like­ly in.”

Source: Tone Vays/YouTube

Mar­ket par­tic­i­pants keep a close watch on the fund­ing rate as it shows whether traders are over­ly bull­ish or bear­ish on cryp­to. Extreme­ly neg­a­tive fund­ing rates, sim­i­lar to what was wit­nessed in Novem­ber 2022, sug­gest­ed that traders were heav­i­ly bet­ting that cryp­to would con­tin­ue to fall, which was a set­up for a strong reac­tion in the oppo­site direction.

At time of writ­ing, Bit­coin is chang­ing hands for $22,555.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Fea­tured Image: Shutterstock/Alla‑V/FlashMovie



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