Experienced trader Tone Vays believes that the latest Bitcoin (BTC) correction is giving bulls a chance to load into the top crypto by market cap at cut prices.
In a new strategy session, Vays tells his 123,000 YouTube subscribers that Bitcoin’s crash on Monday is largely a news-driven event.
According to the trader, investors were spooked 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 situation to buy the dip. This crash was a news related event, and people kind of panicked that the SEC got on the case.”
Following the correction, Vays says that the daily chart for Bitcoin now looks bearish as it is trading below a key moving average.
“The daily chart looks very, very ugly. We have broken the 128-day moving average. This is one of my favorite moving averages. I don’t like the fact that we broke it.
If we break above this moving average again in the next 24 hours, then it won’t matter. But if we don’t, there is 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 go below $25,000.”
The 128-day moving average is currently around $26,264. At the time of writing, Bitcoin is worth $25,587.
Although Bitcoin is showing signs of weakness, Vays says that he expects BTC to rebound in the coming days.
“I still think we are going to rally any day and go higher.”
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investment in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are at your own risk, and any loss you may incur is your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, and The Daily Hodl is not an investment adviser. Please note that The Daily Hodl is involved in affiliate marketing.
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