Veteran crypto analyst and trader Tone Vays says he sees Bitcoin going through a major capitulation event very soon.
In a new strategy session, Vays says that he’s been more or less bearish on the world’s biggest crypto since late May, when it plunged over 50% to test $30,000.
Vays thinks Bitcoin has been trading in a descending triangle, which is a technical formation that suggests a move to the downside once the price breaks the pattern’s support.
“I’ve pretty much been somewhat bearish most of this triangle, and I remain so right now. That’s because I still think that a capitulation day is coming. This capitulation day is coming soon because I also believe that the price of Bitcoin will bounce this summer and be on the way back up, breaking the all-time high later this year. A lot of that has to do with the current bull cycle of Bitcoin, plus some fundamentals.”
The trader says he’s not worried about the Grayscale Bitcoin Trust (GBTC) unlock, which will allow investors of the crypto asset manager to sell their GBTC shares.
Last month, analysts at JP Morgan predicted that the unlocking of GBTC shares will be a bearish catalyst for Bitcoin.
According to Vays, however, the GBTC unlock likely won’t affect the price.
“I haven’t really been paying much attention to the short-term timeframes. I’m sticking to the longer-term timeframes because everything should resolve itself very, very soon. The GBTC premium on Friday closed on a little bit of an uptick… Next week is interesting because that’s when probably the final lockup period ends, but I don’t think it’s going to affect the price.”
Vays says that after a 20% drop in Bitcoin, he thinks BTC’s strong fundamentals will help the leading cryptocurrency ignite a recovery.
“I still think a 20% correction is coming. It doesn’t have to happen, but I think it will happen. After that, it should start to rise, even though the overall picture looks horrible, just absolutely horrible. I believe in the fundamentals.”