Veteran crypto trader Tone Vays says that Bitcoin (BTC) is forming a bullish pattern that could set it up for a significant breakout.
In a new strategy session, the seasoned analyst tells his 123,000 YouTube subscribers that Bitcoin could soon soar by about 10% from current prices.
Vays says Bitcoin is printing a bullish price pattern on the four-hour chart as it consolidates within a very clean channel between about $34,858 and $33,701.
“[On the] four-hour [chart], as long as it doesn’t cross $33,500, it’s bullish. And we can now actually put in a channel. [This is a] gorgeous channel. We are now at the middle of the channel. Very likely we’re going to break out to the upside. Let’s see how long it lasts. More likely this is a breakout than a breakdown. It doesn’t have to break out. Technically, it can go either way.”
The trader gives a “reasonable target” of an eight to 10% rally once the breakout is confirmed
Vays also says that if Bitcoin retraces, it may bottom out before the $30,000 mark where several key moving averages are sitting as likely support.
“This is a monster area of support [at $28,000]. I love this area of support. It would be amazing if the price of Bitcoin pulled into this area of support. But the longer it takes, the more moving averages move up. So when it eventually pulls back… maybe it’ll only go to $31,000. Let’s see how quickly these moving averages can rise.”
Bitcoin is trading for $34,368 at time of writing.
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