Tone Vays Warns Of Bearish Chart Pattern Looming For Bitcoin (BTC)

According to crypto trader Tone Vays, Bitcoin’s (BTC) moving averages are flashing bearish signs which led to 50% BTC crash last time they appeared.

In a recent video session, Vays shared with his 120K subscribers on YouTube that Bitcoin’s seven-month moving average is getting dangerously close of falling below the 20-month moving average.

Looking historically, these crossovers have led to huge price drops for Bitcoin, Vays warns.

“We want to avoid this moving average crossover. The only way to avoid this moving average cross-over is for the prices to rise back above the short-term moving average, which is approximately $50,000 either in the current month or next month. That’s the only way we can avoid the upcoming moving average cross-over, which should be avoided.”

The last time the seven-month moving average fell below the 20-month moving average, Bitcoin lost 50% of its value, the trader reminds.

“The last time these two crossed over, the price of Bitcoin fell over 50%. You don’t want that. And we went all the way down to the next moving average. We can have a repeat of that if the price of Bitcoin is still hovering around $40,000 going into May as these moving averages crossover.”

Going forward, Vays notes that a large price drop to Bitcoin is possible, however, a new bull market is likely to come next.

“I would not be surprised at all if we end up with a repeat of November 2018 when the big catastrophic fall down from $40,000 to $20,000, and then start our new bull market.”

At the time of writing, Bitcoin trades at $38,570 with 0.52% upside on the daily window.