A trader in cryptocurrencies who accurately predicted the decline of Bitcoin in 2018 is now forecasting a decent increase in the price of Bitcoin through the end of the year.
In a new strategy session, Tone Vays informs his 123,000 subscribers on YouTube that Bitcoin is trading within a narrow horizontal channel after staging a rebound from its current bear market low of around $15,700. Vays is referring to Bitcoin’s recent price action.
The fact that this horizontal channel is forming after a 10% upswing indicates that there is a greater than 50% chance that the next breakout will be to the upside, at least to the size of the channel, which is small, and potentially to the size of the prior bounce, which was 10% higher.
In spite of the fact that the experienced trader anticipates a continuation of Bitcoin’s bullish trend in the near term, he believes that the current rally is likely to bring the cryptocurrency’s price closer to a significant resistance level, which may result in the subsequent event of a sell-off.
This brings us to the bottom of the previous channel, which represents major and monstrous resistance, particularly if it makes contact with the 128-day moving average. Therefore, I anticipate that this bounce will most likely continue until the end of the year. After that, I anticipate that everyone will be extremely bullish at the beginning of the year, and then there is a good chance that there will be one more capitulation down.
Vays had previously stated that there is a decent chance of one more capitulation to the level that is less than $15,000.
“The primary reason why I am of this opinion is that we invested a disproportionate amount of time trading at or below $16,000.
The way that markets bottom out typically involves you having only a few hours to buy at the ideal price. You don’t have a week to deliberate over whether or not you should buy the ideal low.
At the time of this writing, one Bitcoin can be purchased for $16,954, representing a loss of over 1% on the day.
