Tone Vays, a veteran crypto trader, has recently issued a Bitcoin (BTC) price trend warning, stating that the flagship cryptocurrency will possibly encounter a major pullback.
In a new strategy session, Vays told his teeming YouTube subscribers that Bitcoin failed to attain a critical support level, which could cause a short-term price decline.
The legendary strategist stated that BTC narrowly escaped a pullback earlier in the cycle, but the escape could be temporary. Vays said traders should expect a notable pullback in the coming weeks.
The analyst further stated 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.
Howbeit, he pointed out that the only scenario that could land BTC below that price is another FTX-like catastrophe within the crypto industry.
Tone Vays noted:
“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…
“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.”
At the time of filing this report, BTC is trading at $23,491, with a 1.3% price uptrend in the last 24 hours.