Veteran analyst Tone Vays says an epic Bitcoin rally is in store if the king of crypto can overcome key areas of resistance.
In a new episode of Trading Bitcoin, Vays says the TD Sequential indicator, which traces a series of price points to identify potential breakouts, suggests Bitcoin may break out to $9,000 in the short term.ADVERTISEMENT
But despite the bullish indicator, Vays says he’s not betting on this coming to fruition due to a strong line of resistance at $8,000.
“Can we make it to [$9,000]? Anything is possible… The biggest reason why that’s a little too optimistic is this behemoth of triple resistance of the 128-day moving average, the 200-day moving average and a fibonacci 62% line [at $8,000]. That is a monster.”
If Bitcoin can make it to $9,000, Vays says the last line of resistance is a descending triangle that currently stands at $9,500.
If that happens, Vays says the highly discussed stock-to-flow model from the anonymous analyst PlanB – which forecasts that BTC will hit anywhere from $100,000 to $288,000 by 2024 – will suddenly be on the table. Vays also points to John McAfee’s infamous bet that BTC will hit $500,000 this year.
“The moment we break above this red line [at $9,000] PlanB is going to be right. And PlanB has some very optimistic targets.
For all we know, John McAfee could be right with his $500,000 target. This is the ultimate resistance and it’s not that further off. This is at $9,500 right now. What do I think is going to happen? What I think is going to happen is we’re going to get rejected by this monster [at $8,000].” [ok I see now where he says it’s a no-go. So I think you just have to finesse the top a bit otherwise it looks like you’ve misinterpreted him.]
Vays says he’s expecting BTC’s current rally will continue until it hits that barrier at $8,000. After that, he predicts BTC will correct to $7,450 or $7,200.