After undergoing a gigantic plunge during the first week of November, the Bitcoin price maintained a stagnant consolidation for a while before surging slightly. Since then, the asset has been accumulating gains to pull a massive leg up and reach the required resistance beyond $20,000 in the coming days. Meanwhile, the possibility of a ‘Dead-Cat bounce’ hovers over the BTC price rally as the long-term forecast continues to be bearish.
An experienced trader and seasoned analyst believes that the price of bitcoin (BTC) is close to reaching a critical moment within the current cycle, which could set targets for the near term. In the latest video update, Tone Vays said that the price of BTC seems to be weak at the moment and another capitulation is needed.
“It’s still not looking very good because we are stuck at $17,000 and nothing is rising yet. So we continue to consolidate and to frustrate the majority of people, which is one of the ways in which markets bottom,”
He says that the price is currently struggling with the horizontal resistance line which is currently near the $19,000 level. Therefore, the rally to the resistance level is in trend since June, which could be a break or break moment for the price.
The trader cautions that the BTC price could be in the middle of the dead cat bounce which is largely considered bearish in the long term. Hence, points out the possibility of dropping heavily in the coming days.
“On a weekly scale, it looks like we are still in the middle of a dead cat bounce in that $19,000 breakout zone. Once we reach $19,000, it will be make-or-break territory for Bitcoin. That’s going to happen. So for bitcoin to reach $21,000 it must move above $19,000.”
Meanwhile, the short-term forecast for the asset appears to be slightly bearish carrying the possibility of smashing the lower levels at around $10,000. In the case of bearish action, the analyst believes it could be only for a short time frame.
“In fact, I personally don’t expect bitcoin to go below $10,000. If it does, I expect it to stay there for 10 minutes. And I’m 99.9% sure I won’t do it at that price.” Because either the exchange is down, or I’m not going to be sitting there with my finger on the mouse. So as in is it possible for bitcoin to flash crash to $9,000, $8,000, $6000? … yes, it’s possible but very lucky There will be people who will buy it at those prices so quickly that it will turn around very quickly.”
