Over the past few weeks, the bitcoin price has soared by thousands of dollars – and peaked at around $8,400 at its highest. Now, many wonder if the price will continue to rise or if we will see a decline.
One person who believes in the latter is Tone Vays, a well-known analyst and expert in the crypto world. He thinks the market has been very irrational lately.
“The more irrational a move up, the bigger the pain. We saw what happened the last time the market move up irrationally. We hit $20,000, and are, I believe, still suffering for it”, says Tone Vays to crypto news site Cryptopotato during the Consensus conference in New York.
Believed in a “bull trap”
When the bitcoin price dropped to around $3,000 in December last year, Vays explains that he thought that there would be a so-called “bull trap”, i.e. an incorrect signal that the price will continue upwards when in fact it will turn down again, up to $5,000-$6,000.
But, as everyone knows, the bitcoin price has continued to rally to $8,000 and beyond.
“We’ve broken $6,400, and in a matter of days, went all the way to $8,300. I don’t understand why that happened. I don’t see anything in the charts that should have caused it. I don’t see anything changing fundamentally that should’ve caused it. This current move makes no sense to me”, says Tone Vays to Cryptopotato.
Considering selling
Now, Tone Vays is considering selling parts of his “hodl-position” since he thinks there is a risk that the bitcoin price will fall back again soon.
“If we pull back 30 to 40 percent, [and are] able to maintain a high above $4,000, it might be that the bear market has ended”, says Vays, although adds this speaking to Cryptopotato:
“I would rather be cautious than FOMO (fear of missing out) in.”
