The cryptocurrency space was recently dealt with another blow as seen by the collective fall in prices; Bitcoin [BTC], most notably, fell down by approximately $400 in valuation. The finger was pointed towards the Bitfinex-Tether lawsuit by the New York State Attorney General, which placed the exchange in a tight situation.
However, Tone Vays, a cryptocurrency analyst, believed that the market was not entirely affected due to the Bitfinex fiasco as market analysis had indicated a fall before the lawsuit situation itself.
Tone Vays recently discussed on his YouTube channel that market analyses do not indicate an exchange implosion, but it does indicate a period where the price is exhausted. Prior to the Bitfinex announcement, the price of Bitcoin [BTC] had reached exhaustion and upon that, it was possible for even small news to trigger a massive devaluation.
Tone Vays stated that there was a vast difference between news events and fundamental analysis affecting the market. He indicated that the Bitfinex scenario was not a fundamental event until or unless someone had internal information or someone had researched Bitfinex’s history and predicted the implosion.
Additionally, he added that if Bitcoin [BTC] was placed around the $3000 range when the news broke out, it might have rallied the prices up instead of rallying down.
“News doesn’t change the trend. Don’t come back to me and say that it was the Bitfinex news which took the market down. The market was already going down for a full 24 hours before the news broke out.”
Vays drew further attention to the weekly chart and indicated that a major pullback might take place which would take the prices below the $5000 mark and somewhere around $4100.
He added that a trend reversal should also occur which would push the prices up to around $5000. Such a movement of the price should create an ascending triangle and eventually confirm that the Bitcoin [BTC] bottom is actually in.
“The absolute perfect scenario for $3000 being the low, is for the price to pull back into $4000, then pull up to around $4800, and then pull back up to $5500, then again pull down to around $4500 and continue the trend to make this giant ascending triangle between now and say November. The halving that occurs in May should then bust us out of the triangle and go forward into another major bull run.”
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