Seasoned trader Tone Vays believes the latest Bitcoin (BTC) correction is giving bulls a chance to load crypto at discounted prices by market cap.
In a new strategy session, Vays tells his 123,000 YouTube subscribers that Bitcoin’s drop on Monday is largely a news-driven event.
According to the trader, investors were shocked by the news that the US Securities and Exchange Commission (SEC) is suing crypto exchange Binance and its CEO, Changpeng Zhao.
“I still think this is a good buy-the-dip situation. This drop was a news related event and people just kind of freaked out because the SEC joined the matter.”
After the correction, Vays says Bitcoin’s daily chart now looks bearish as it trades below a key moving average.
“The daily chart looks very, very ugly. We broke the 128-day moving average. This is one of my favorite moving averages. I don’t like that we broke it.
If we bounce back above this moving average in the next 24 hours, it won’t matter. But if we don’t, there’s some horizontal support at $25,000. Other than that, you have the long-term moving average at $23,500.
I would be surprised, I would be very surprised if we get below $25,000.”
The 128-day moving average is currently hovering at $26,264. At the time of writing, Bitcoin is worth $25,587.
While Bitcoin is showing signs of weakness, Vays says he expects BTC to rebound in the coming days.
“I still think we can recover and move up any day.”
i
Don’t Miss Out – Subscribe to receive crypto email alerts delivered straight to your inbox
Check price action
follow us on Twitter, Facebook And Telegram
Surf the Daily Hodl mix
Image generated: Midway through the journey
