Famous Analyst Warns Investors! Bitcoin Could Drop To These Levels Again
Senior crypto currency analyst Tone vays, leading crypto-currency unit Bitcoin ‘s believes that showed signs of weakness Bitcoin investors be warned about it.
Famous Analyst Warns Investors: Bitcoin Is Signaling Down
Making statements in a new strategy session, Vays told 114,000 YouTube subscribers that while Bitcoin continues to rise, indicators are now showing bearish signals.
“But I don’t like oscillators on the four-hour time frame, it comes to an MRI peak. So you really want to be careful here. You want to be a little cautious… So that’s worrisome. This is not normal. You don’t normally get a bearish CMF as the price hits a new high. This is a very, very rare event. But that’s what happens when your volume drops so badly.”
Vays refers to the Chaikin money flow (CMF) indicator, which is a technical oscillator that monitors volume to identify periods of accumulation and profit taking . According to the famous analyst’s chart, the CMF is hovering below the zero line, which indicates weakness in the market.
Bitcoin Volume Shrinks
Looking at the daily timeframe, Vays highlights that BTC’s volume has ” shrunk ” amid Bitcoin ‘s rise.
“You can see that volume has dropped overall since the big spike on May 19… It’s just a general trend. Each peak is lower. This is not great. That’s not what you really want to see.”
Given all this data, analyst Vays predicts that BTC will pull back again in the short term before continuing its rise to all-time highs.
“I expect to buy another bottom after approaching an all-time high. And then, I believe there will be a pullback to the lower $50,000 area. Will this happen now? I have no idea. But we’re going a little higher. I still think there is some more room but then I think there will be a pullback before the big spike at the end of the year.”