A seasoned crypto trader is issuing a warning to investors about Bitcoin (BTC), saying that a real pullback could be on the horizon for the king crypto.
In a new video update, veteran crypto strategist Tone Vays tells his 123,000 YouTube subscribers that the top crypto asset by market cap failed to capture a critical support level, which could cause a short-term price drop.
According to Vays, BTC narrowly missed a pullback earlier in the cycle, but only managed to curb the issue temporarily. The analyst says to expect a “significant” pullback in the coming weeks.
“We got rejected by a very critical resistance level [$25,500]. I have been warning about this level. I have said this is a very challenging time to navigate because had we rallied right into [a] death cross [on February 13th], it would have been obvious that there was time for a really significant pullback, but we turned earlier and the pullback was not very deep, so now we’re in a situation where the real pullback might be coming over the next few weeks.”
Vays goes on to say that he expects BTC to dip toward the $20,000 level, adding that if it happens to drop below that, he plans to allocate more of the crypto asset to his portfolio. However, he says the only scenario that could land BTC below that price is another FTX-like catastrophe within the crypto industry.
“Don’t be surprised if we end up falling down to $20,000. Though I don’t think we’re going to fall too much further below $20,000. [That price] is my ultimate buy the dip… Pending some monster catastrophe, like Binance going the way of FTX, I don’t see Bitcoin falling below $20,000.”
Bitcoin is trading for $23,399 at time of writing, a 1% increase during the last 24 hours.
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