Bitcoin (BTC) may have a hard time falling below the key psychological area of $20,000, according to seasoned trader and analyst Tone Vays. Vays, who has over 123,000 subscribers on YouTube, said that the chances of Bitcoin falling below $20,000 has been drastically reduced after BTC rallied above $22,000 today.
“If [Bitcoin] goes back above yesterday’s swing high [$21,650], I think going sub $20,000 now becomes very, very, very unlikely.”
Vays also looked at the weekly chart of Bitcoin and said that one indicator suggests that BTC has more upside potential in the long term. He pointed out that the relative strength indicator (RSI) has plenty of room to the upside and it has not even broken its prior swing high, which means that the weekly RSI is still barely bullish.
In addition, Vays believes that Bitcoin has likely printed its bear market bottom in November when BTC plunged below $16,000. “The funding rate told you that ‘Hey, this is probably the bottom,’ just because of the BitMEX funding rate… Their funding rate is actually an amazing indicator. To me, this indicated that the low is likely in, not definitely in, but likely in.”
He said that the funding rate, which is closely watched by market participants, indicated that the low is likely in, not definitely in, but likely in. The funding rate shows whether traders are overly bullish or bearish on crypto.
Overall, Vays believes that the current rally of Bitcoin above $22,000 and the bullish indicators like RSI and funding rate suggest that a pullback below $20,000 is now unlikely to transpire.