A crypto analyst known for his accurate predictions is warning of another Bitcoin crash after disastrous week.
Tone Vays expects new lows in Bitcoin price
According to veteran investor Tone Vays, Bitcoin is on the verge of another collapse in 2022, where it heads to a new low. In a recent post, Vays informed 121,000 YouTube subscribers that the situation for Bitcoin is still dire, even as BTC tries to “desperately” hold $19,000. In part of the broadcast, the analyst states:
The weekly chart sees another dreaded candle. Unless there’s a major rebound, which I doubt is a holiday weekend, it will likely be near the lowest lows. Currently there is a bearish view. There is also a bearish trend on the four-day chart. That’s why we pay [100%] in cash.
Critical level for BTC: $19,000
According to Vays, who looked at the daily chart, Bitcoin is on the verge of breaking the $19,000 support. The analyst adds that this could lead to another selling event:
Daily chart preparing for a purchase using MRI. That’s great news then. What’s the bad news? We will follow this trend! Because the bad news is that we are about to break the extremely important support that could push the Bitcoin price down a lot. Hopefully there will be a great comeback early next week with an MRI acquisition similar to the one that occurred two weeks ago.
According to Vays’ chart, Bitcoin could reach its target price of around $14,500 if $19,000 is broken.
But Tone Vays is not alone
Additionally, “We can expect it to drop to $18,000 while below the low range,” Crypto Tony said on July 4. In terms of downside targets, others continued to watch the region around $16,000.
On the other hand, the difficulty affecting miners’ stability to stay on the net is being lowered in this week’s refactoring. Two weeks ago the difficulty saw a decrease of 2.35%. Then the difficulty, which automatically rises and falls to account for fluctuations in miner participation, will hardly change over that time.
On-chain tracking resource BTC.com estimates that difficulty will increase if current prices remain the same, with a 0.5% impact on a metric close to ATH levels.
Data from asset manager Capriole Charles Edwards put the miners’ cost of production collectively at $26,000. $16,000 of that is electricity, meaning miners’ overhead directly impacts their ability to limit losses in the current environment. Edwards says:
We traded below Electricity Cost in June, but the base has since fallen as inefficient miners have surrendered.
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