Veteran trader Tone Vays is putting Bitcoin traders on notice as he believes the leading cryptocurrency is flashing signs of weakness.
In a new strategy session, Vays tells his 114,000 YouTube subscribers that while Bitcoin continues to inch higher, lower timeframe indicators are now showing bearish signals.
Vays is referring to the Chaikin money flow (CMF) indicator, a technical oscillator that tracks volume to identify periods of accumulation and profit-taking. According to the trader’s chart, the CMF is hovering below the zero line, indicating weakness in the market.
Looking at the daily timeframe, Vays highlights that BTC’s volume is “tapering” amid Bitcoin’s ascent.
In the short term, Vays predicts BTC to pull back before continuing its ascent to new all-time highs.