Tone Vays Looks Into Bitcoin And Says That The Technicals Look Worrying

According to a long-term crypto trader Tone Vays Bitcoin’s technicals don’t look very favorable at the moment.

In a recent video, Vays notes that BTC is coming near to closing below the 50-week moving average (MA).

Last time it happened, Bitcoin went all the way down to touch the 200-week MA, which is at the moment at $20,000 level.

“If we break this moving average I would need to bring the 200-week moving average in… And, well, that’s not good, is it? That takes us down to the $20,000 mark. Now in a way that’s bad but in a way that’s actually really good. In a way, if we do make it here, oh boy is there going to be a massacre. Mostly in the sh*tcoin space, there will be a massacre.”

The trader recalls the pandemic-induced market crash of March 2020, and points out that the 200-week MA was a big support, which helped bounce the BTC price rapidly up to new highs.

“There will be huge panics, but also, look at how the 200-week perfectly bounced the price of Bitcoin to eventual new all-time highs. So resetting this market to the 200-week moving average would be – I’m not going to say good – but it’s going to be bad either.”

Despite Vays being prepared for the worst case scenario, he still believes the bottom somewhere at $40,000 level for Bitcoin is much more likely than drop all the way $20,000.