Trader Tone Vays Updates His Outlook For Bitcoin Amid Latest Dip Below $40K

Bitcoin (BTC) trader, Tone Vays, updates his outlook for the leading crypto asset, as it’s going through “nasty breakdown,” he says.

Vays notes in a recent video update that Bitcoin, which is currently down 40.5% from its all-time high, could fall even lower, if support levels are lost.

“It couldn’t rally much. It got back to that same area of support ($40,000), rallied even less, and then the total breakdown. This is a very nasty breakdown. The next low that we have is down here, and if we approach this low, I think it’s going to go down and go down hard.”

According to Vays, a close below the $39,500 area, would mean bearish outlook in the short-term.

The trader also looks into Lucid SAR indicator, which is used by traders to determine trend direction and potential reversals in price, and says that Lucid SAR is close to turning bearish on Bitcoin.

“There’s your line. If the price of Bitcoin closes today below $39,500, I would be incredibly bearish going into the weekend and into next week, and into next month even. It’s a very, very bad sign because the four-day chart would also be fully bearish, and the weekly chart would also be fully bearish. And we are likely to break the Lucid SAR next week. All kinds of bad is about to happen if Bitcoin drops below $39,500.”

At time of writing, BTC trades at $40,480, up 2.4% on the daily chart.