Bitcoin Forming ‘Nasty’ Bearish Pattern That Could Trigger Breakdown to Levels Last Seen in Q2 2020: Trader Tone Vays
The veteran crypto trader who nailed Bitcoin’s 2018 bear market collapse warns that BTC is setting up for another epic crash.
In a new strategy session, trader Tone Vays tells his 121,000 YouTube subscribers that Bitcoin is forming a descending triangle, a pattern that BTC also printed during the height of the 2018 bear market when the king crypto nosedived from $6,000 to around $3,000.
“This would be a potential triangle, and it actually is a triangle. It’s a nasty one. I don’t like it.”
According to Vays, a breach of the triangle’s horizontal support could drive Bitcoin to a level last witnessed in April of 2020.
“Based on this triangle, what is our projected move? We can take a look at the height of this triangle… That’s 60%… That takes us down quite a bit doesn’t it? Takes us down to $7,000. Yeah, that’s scary.”
While Bitcoin melting down to around $7,000 appears to be the technical target of the pattern’s breakdown, Vays says he doesn’t see BTC plunging even close to that level.
“So even though [$7,000] is the target of the triangle, I don’t believe we are going to achieve this target. A more realistic target is something like $11,000 to $12,000 range.”
At time of writing, Bitcoin is trading at $19,178. A correction to Vays’ realistic target represents a downside potential of about 40% for the leading crypto asset.
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