dailyhodl.com
A widely followed crypto analyst says that he expects Bitcoin’s (BTC) current period of low-volatility consolidation to resolve in a strong breakout rally.
In a new video update, seasoned trader Tone Vays tells his 123,000 YouTube subscribers that even though the king crypto is in the middle of a “boring” consolidation phase, it’s flashing signs that point toward an upcoming burst to the upside.
According to Vays, key moving averages (MAs) on the weekly chart are now acting as support for the king crypto.
“This consolidation is really boring, but it’s bullish. The moving averages are continuing to separate…
[The] 50-week [MA] continues to drop, [while] the 200-week is slowly rising, and it will continue to be rising because new candles are above it.”
Vays says that he expects Bitcoin to flash a golden cross on the weekly chart as the 20-week moving average looks primed to pass above the 50-week moving average.
In technical analysis, a golden cross takes place when a short-term moving average such as the 20-week MA crosses above a long-term moving average such as the 50-week MA. Traders keep a close watch on golden crosses as it can indicate that an asset is in an uptrend.
Vays also says that BTC’s Lucid SARs, a directional trend indicator, look good.
All in all, the veteran trader believes that Bitcoin is likely to break out of its consolidation within two weeks.
“In a few days, we’re gonna have another crossover between the 20-week and the 50-week, and the Lucid SARs are looking really nice. So still bullish.
Our allocation, we’re still 100% bullish in the market. Nothing here is scaring us yet. I think in the next week, or the week after, we’re going to start to go up again.”
Bitcoin is trading for $28,034 at time of writing, a fractional dip during the last 24 hours.
Generated Image: Midjourney