Veteran trader Tone Vays warns, saying Bitcoin’s (BTC) unprecedented run is likely coming to an end.
In a new video update, the veteran analyst tells his 123,000 YouTube subscribers that he expects the crypto king to take a dive in January, right around the time the U.S. Securities and Exchange Commission (SEC) will approve or deny bids to spot market BTC to create. Exchange Traded Funds (ETFs).
According to Vays, regardless of what the SEC decides, he foresees a sell-the-news event for the top crypto assets by market cap.
“I was looking for a top in the $48,000 range sometime in mid-January, lining up for their next rejection of the Bitcoin ETF.
Even if the Bitcoin ETF isn’t rejected, I still expect it to be a sell-the-news event, not a buy-the-news event. So either way, if Bitcoin reaches this next Fibonacci line (0.618) and the $48,000 price level sometime in early to mid-January, I will see that as a short-term top and anticipate a pullback on the SEC news.”
According to Vays, the SEC’s decision will be a sell-off event for BTC due to the large price increase this year. However, he notes that the SEC’s choice could still spark a rally, but only if the key digital asset crashes to the $35,000 level beforehand.
“The reason why it would be a sell-the-news event is because Bitcoin has had an unprecedented run this year. Bitcoin is up 200% this year. After a run-up of 200% it is time for a real pullback…
I would consider this a sell-the-news event if Bitcoin is at the top ($48,000).
Remember, we could start crashing tomorrow and Bitcoin could be at $35,000-$36,000 by mid-January. In that case, I’m going to consider good news from the SEC as very, very bullish for Bitcoin’s price if Bitcoin stays at that level. $36,000. But if Bitcoin is at $48,000, I consider that a sell-the-news event.”
Bitcoin is trading at $43,172 at the time of writing.
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