Veteran trader Tone Vays says a number of key technical metrics are bullish for Bitcoin (BTC) after being in a bearish state for most of the year.
In a new strategy session, Vays tells his 122,000 YouTube subscribers that Bitcoin remains strong as the weekly chart flashes multiple bullish signals.
“We still have a higher close on the weekly candles. We have even more swing on the weekly candles. Both are bullish signs. We have a green star candle. We have a countdown for the MRI [momentum reversal indicator], and we are above the 200 week moving average. These are all bullish signs.
The MACD [moving average convergence divergence] is about to cross. This is a bullish sign. We’ve been here before. She didn’t have a lot going on, but I think this time is different.”
Traders use MRI and MACD to spot potential reversals in trends.
Vays adds that two key technical indicators are also showing signs of strength for BTC.
According to Vays, Chaikin Money Flow (CMF), which measures the buying and selling pressure of an asset, “looks promising.” Additionally, the veteran trader says the Relative Strength Index (RSI), a momentum indicator that indicates potential trend reversals, is also bullish.
“THE [CMF] it also looks very favorable. It would be nice if we could get it [CMF] over the last hump, but more importantly, over the zero line. It might take a few more weeks to get there, but it looks promising. Good show then.
The RSI is right at normal levels. So it tells me that this is a potential buying opportunity in terms of the RSI. So all metrics are actually turning into a bullish environment.”
Looking at the daily chart, Vays says he remains bullish on BTC despite the recent pullback and is targeting the $28,000 price level.
At the time of writing, Bitcoin is changing hands for $22,895, down less than 1% on the day.
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