Tone Vays, who accurately predicted the collapse of Bitcoin in 2018, says that Bitcoin is trading within a narrow horizontal channel after rising from the current bear market low of $ 15,700. The analyst used the following words in his statements on the subject:
“The fact that this horizontal channel is occurring after a 10% rise indicates that there is a greater than 50% probability that the next breakout, at least the size of the smaller channel, is as large as the previous bounce, which is potentially 10% higher.”
While Vays expects the uptrend for Bitcoin to continue in the short term, he says the rally will likely push Bitcoin to a major resistance level that could trigger the next selling event. At this point, Vays, drawing attention to the 128-day moving average, makes the following statement:
“This takes us to the lower end of the previous channel, which is a huge resistance, especially if it comes in contact with the 128-day moving average. So I expect this bounce to probably continue until the end of the year and then everyone will be bullish at the start of the year and then bearish once again. “
Vays had previously said that it is highly likely to drop to levels below $15,000 once again. He states that the main reason for this is that too much time was spent at the $16,000 level. Stating that the way the markets see the bottom also reveals that there is a short time to turn the fall into a buying opportunity, the analyst thinks that Bitcoin will not allow investors for a few weeks for purchases.