Veteran cryptocurrency trader Tone Vays says he is taking the next critical stage of testing for the top cryptocurrencyBitcoin (BTC) identified.
In a new strategy meeting, Vays tells its 118,000 YouTube subscribers that it expects BTC to undergo its “ultimate” test in late December or early January.
“When the price of Bitcoin is right [the $50,000 range] and it dips back to $ 48,000 over the next four or five days, which could be a good enough consolidation to jump right in [its] Death cross …
I’m assuming the moving averages will cross at some point in the very end of December through early January and that will be the ultimate test for that resistance of Bitcoin. “
Although no official time frames are set, an asset’s death cross forms when its short-term moving average falls below its long-term moving average, which has traditionally been a bear signal. Vays notes that BTC’s Death Cross could pass anywhere in the $ 52,000 to $ 54,000 range.
Looking at BTC’s four-hour chart, Vays says Bitcoin is forming a double-top pattern, which he sees as a sign of bullish momentum.
“The four-hour chart appears to have broken the MRT (Momentum Reversal Indicator) resistance line, but it hit an MRT high at a four-hour level perfectly [chart] the way it struck [hours ago]. Look what happened after that – the tip has not yet broken at the intra-candle level …
You know my rule for double tops: Double tops should be broken upwards. The fact that we made it to the top and matched [the second] top is a bullish sign. “
The MRI is a time-based chart indicator that attempts to anticipate a reversal in the price movement of an asset.
Bitcoin is trading hands at $ 50,704 at the time of writing, up 10% from its seven-day low of $ 45,682.
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Source: Crypto News Deutsch