A widely followed cryptocurrency analyst says he expects Bitcoin (BTC)’s current period of low-volatility consolidation to unravel into a strong breakout rally.
In a new video update, veteran trader Tone Vays Tells His 123,000 subscribers to his YouTube channel claim that although cryptocurrency King is in the middle of a “boring” consolidation phase, it is flashing signs of an upcoming rally to the upside.
According to Vays, the major moving averages (MAs) on the weekly chart are now acting as support for Crypto King.
“This consolidation is really boring, but it is bullish. The moving averages are continuing to separate…
[The] 50 weeks [MA] continues to fall, [while] 200 week is slowly rising, and it will continue to rise because new candles are above it.”
Vays says he expects Bitcoin to light a golden cross on the weekly chart as the 20-week moving average looks set to cross the 50-week moving average.
In technical analysis, a golden crossover occurs when a short-term moving average such as the 20-week moving average crosses above a longer-term moving average such as the 50-week moving average. Traders closely watch the golden crosses as it can indicate that an asset is in an uptrend.
Vays also says that BTC’s Lucid SARs, which is a directional trend indicator, are looking good.
All in all, the veteran trader believes that Bitcoin is likely to break its consolidation within a couple of weeks.
“In a few days, we will have another cross between the 20th week and the 50th week, and the Lucid SARs will look really nice. So it’s still bullish.
Our allocation, we are still 100% bullish on the market. Nothing here scares us yet. I think next week, or the week after that, we’ll start going up again.”
Bitcoin is trading for $28,034 at the time of writing, which is a partial decline over the past 24 hours.
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