Veteran crypto trader Tone Vays is looking at the state of Bitcoin following the deep correction that took BTC down below $42,000 in a matter of minutes last weekend.
In a new strategy session, Vays says that if the stock markets can pull off a rally in the early stages of this week, Bitcoin may be able to muster up the strength to return above the crucial $53,500 level.
Vays predicts Bitcoin having a V-shaped reversal back into a bullish trend. He notes how quickly BTC moved from $47,000 to $41,500, indicating strong buying demand in the low $40,000 range.
“I do think this is going to be like a V-shaped reversal. You’re not going to get another chance to buy this dip. If you happened to go to the bathroom during this crash from $43,000 to $41,000, you kind of missed it… On an hourly scale, you only got less than an hour between $47,000 and $41,500. You did get another chance to buy at $47,000, but you didn’t get a chance to buy sub-$45,000.”
The closely followed trader says that after the recent market meltdown, Bitcoin actually has a higher chance of hitting new all-time highs this year than it did before the crash. According to him, Bitcoin’s daily candle on December 4th may have created a spring-like catalyst for BTC to begin a new uptrend in the coming days.
“Because of the way this candle manifested itself, there is now a higher probability that of a new all-time high this year, than there was yesterday when the candle was higher because on yesterday’s candle, it still had the high chances of being a slow drag down decline followed by consolidation. But the V-Shaped move actually creates additional upwards pressure of FOMO [fear of missing out].
At time of writing, Bitcoin is trading at $49,260, about 28% down from its all-time high above $69,000.