Jun 30, 2022 at 03:46Trader Tone Vays updated his Bitcoin forecast as the coin holds steady at $20,000. In particular, he pointed to technical indicators that showed bitcoin could be in trouble.
The expert described the situation in his new video, starting with weekly candles. According to him, they look ugly.
“Everything is starting to look nasty with a new low close. A new low close on a weekly level is very bad. Weekly swing low (A swing low is when price makes a low and is immediately followed by two consecutive higher lows), lower than last week’s low, is also very bad,” he said.
Weiss also pointed to the deviation of the moving average convergence divergence (MACD), which follows a momentum indicator that shows the relationship between two moving averages of an asset. This trend is ugly too, says Vays.
Vays highlighted the Relative Strength Index (RSI), measuring the speed and change of price movements. The RSI is considered overbought when above 70 and oversold when below 30. The RSI on a weekly chart is lower than it might have ever been. The expert thinks that might just be an all-time low on the RSI. And that’s not good.
“There’s not much else for it to go but up, but technically it’s still a 25 or something so it’s now that terrible. It could go a little lower. It could get worse. There’s not going to be good news today. It’s actually all going to be bad,” said the expert.
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Ultimately, Vays uses Chalkin Money Flow (CMF) to look for trend direction by analyzing the weight-average of accumulation and description, usually over 21 days. A CMF value above the zero line is a sign of strength in the market, and a value below the zero line is a sign of weakness. The forecasts here are not optimistic either. According to Vays, the CMF might be at a historic low.
Weiss’s predictions are backed up by the current bitcoin price figures in the market. At the time of writing, the coin is trading for $19,073.
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