Veteran trader Tone Vays issues a Bitcoin (BTC) alert, saying a “critical low” is arriving

Veteran crypto trader Tone Vays is updating his Bitcoin (BTC) forecast amid the Federal Reserve’s rate hike that has seen BTC see volatile price moves.

In a new strategy session, Vays tells his 120,000 YouTube subscribers that Bitcoin’s near-instantaneous 3% surge from $38,766 to $39,935 yesterday was most likely a dead stone jump.

The trader first looks at the four-day Bitcoin candlesticks, which saw Bitcoin fall from a weekly high of $40,183 on April 28th. Vays balances technical analysis (TA) against fundamentals as he says:

“I don’t care that much about that orange arrow, I don’t think it’s that critical, definitely not like this one [late January 2022]so we wait.

For now, this looks like a nice dead cat bounce and will most likely push the price of Bitcoin lower.

All TA indicates lower prices. Basically, I’m always bullish on bitcoin and it could break out at any minute, but TA tells me it will [green candle up] is just a dead cat, and we should have one more critical point.

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Source: Tone Vays/YouTube

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Referring to the daily candles, Vays highlights $41,000 as a key resistance level that he doesn’t think BTC will breach.

“TA on the daily newspaper, I don’t think it’s important. I think there is a major resistance in the $41,000 area. I remain bearish on this daily chart as well.

The CMF [Chaikin Money Flow] is anything but impressive. Funding rate… look how much time has accumulated down there… It’s pretty balanced right now.

It is neither bullish nor bearish at the moment.”

CMF stands for Chaikin Money Flow, a metric that measures the volume-weighted average of accumulation and distribution over a period of time.

After peaking at $39,946 yesterday, Bitcoin saw a dramatic 7.95% drop today to as low as $36,770.

At the time of writing, BTC is down 5.6% in the last 24 hours and is valued at $37,020.

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