Veteran trader Tone Vays says a number of key technical metrics are flipping bullish for Bitcoin (BTC) after enduring a bearish backdrop for most of the year.
In a new strategy session, Vays tells his 122,000 YouTube subscribers that Bitcoin is holding strong as the weekly chart flash multiple bullish signals.
“We still have a higher closing high on weekly candles. We still have a higher swing high on weekly candles. These are both bullish signs. We have a green star candle. We have a bullish count on 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 over. That’s a bullish sign. We’ve been here before. It didn’t muster much, but I think this time is different.”
Traders use the MRI and the MACD to spot possible reversals in trends.
Vays adds that two crucial technical indicators are also showing signs of strength for BTC.
According to Vays, the Chaikin money flow (CMF), which measures the buying and selling pressure of an asset, is “looking promising.” In addition, the veteran trader says the relative strength index (RSI), a momentum indicator that points to possible trend reversals, is also turning bullish.
“The [CMF] is also looking very favorably. It would be nice if we can get the [CMF] over the last hump but more importantly, over the zero line. We might need a few more weeks to get there, but it’s looking promising. So looking good.
The RSI is right at the normal levels. Therefore, it tells me that this is a potential buying opportunity from the RSI perspective. So all the 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 time of writing, Bitcoin is changing hands for $22,895, down less than 1% on the day.
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