Cryptocurrency analyst Tone Vays has recently warned that Bitcoin BTC/USD is likely to plunge by over 13% from the current price before a rally can arise.
About the Bitcoin rally, he says it is likely to experience an adverse move ahead before a bullish cycle can be confirmed.
Vays says Bitcoin has stayed in a range for too long after plunging to two-year lows in November, which is atypical behavior when the price of an asset has bottomed out.
“The main reason I believe that is because we spent way too much time at the lows of $16,000. Market bottom usually means you only get a few hours to buy the perfect low. You don’t get a week to think about buying the perfect low,” Vays explained.
He predicted that entry opportunities for Bitcoin will arise once the flagship crypto asset capitulates or after confirming a rally.
“Either we crash sub-$15,000, and that’s an amazing buying-the-dip opportunity. Or you wait and buy the breakout above $21,500,” he said.
“You either get minimal time to buy the perfect low, or it spends so much time at the perfect low that people don’t believe it is low. This is why I am still very concerned of one more capitulation down,” Vays added.
Last week, he warned that Bitcoin still looks pretty weak and may be close to another capitulation.
He said the current market situation for Bitcoin is still not promising as it remains trapped around $17,000, with no signs of growth.
However, another crypto analyst name Smart Contracter said last week that Bitcoin’s rally is likely coming to an end, and it would drop to one more low, followed by six months of accumulation.
“I think we are close to a bottom, not quite there yet, but close,” the analyst tweeted.
Price Check: On Saturday, Bitcoin was trading flat at $17,191.52, having gained 1.29% in the past seven days.
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Image and article originally from www.benzinga.com. Read the original article here.