Veteran analyst Tone Vays expects Bitcoin (BTC) traders and investors to panic and sell their BTC in the coming days.
In a recent strategy session, Vays told 121,000 YouTube subscribers that both the monthly and weekly charts look bad as Bitcoin struggles to stay above the key psychological level of $30,000.
The seasoned trader added that Bitcoin investors should prepare themselves for a possible strong selling event in the next seven days.
“It is very likely that we will reach the capitulation period next week. If we go to the $30,000 range… This could be a good buying opportunity. However, this buying opportunity is more likely to return to $37,000 and make a new low later this summer. It’s not just a very good looking painting.”
The capitulation the trader is talking about refers to a period of strong selling activity where they give up their positions and sell their holdings as quickly as possible. It is also commonly known as panic selling.
Besides, Vays noted that he closely monitors the Momentum Reversal indicator (MRI), a metric that calculates trend times and changes based on an asset’s price momentum. Analyzing the indicator in question, Vays thinks that the bearish momentum will prevail over the next three months.
“According to MRI, the daily chart will go down for a while. MRI still says there will be about four to five more days of downward movement. The weekly scale has about four or five more weeks of downward movement. The monthly scale has about three more months of downward movement.”
Additionally, Vays recently predicted that BTC will bottom around $25,000 in November this year.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.