Bitcoin, the world’s leading cryptocurrency, is on the radar for a potential significant market correction, according to seasoned trader Tone Vays. With a subscriber base of 123,000 on YouTube, Vays recently shared his insights in a video update, raising concerns about Bitcoin’s future price movements.

Vays emphasizes the importance of a key level, stating that if Bitcoin fails to reclaim it, the digital currency could dip into the mid-$30,000 range. Despite expressing a desire for upward movement, Vays is cautious and intends to remain on the sidelines with cash until specific conditions are met.

“All signs are pointing to a much, much bigger correction. I hope this doesn’t happen. I really hope we go up from here. I don’t want to see us correct. We’ve already dealt with a huge bear market,” Vays states in his video.

To initiate a long position, Vays highlights the necessity for Bitcoin to break above certain moving averages. Specifically, he identifies the need for a daily close at $44,000 or a move to $36,000. The trader suggests that a potential buying opportunity might emerge around $39,000, depending on the speed and trajectory of the price decline.

Vays incorporates technical indicators like the Momentum Reversal Indicator (MRI) support line on the daily chart, the 128-day moving average, and the top of the channel as reference points for potential entry or exit points in the market.

However, Vays makes it clear that if Bitcoin dips below $40,000, it should not be compared to historical pre-halving events, where significant price drops occurred before miners’ rewards were halved. The next halving event is anticipated in April, and Vays doesn’t foresee the typical pre-halving dump occurring four months before the event.

“Do I think the pre-halving dump has started? No, I wasn’t actually anticipating the pre-halving dump. The pre-halving dump usually happens a few weeks before the halving. It doesn’t happen four months before the halving,” Vays explains.

Regarding potential extreme scenarios, Vays predicts that Bitcoin is unlikely to revisit the $20,000 range. He sets $30,000 as his absolute bottom low, speculating that a catastrophic event would be required for Bitcoin to reach such a level.

For Vays, the critical threshold is a daily close at $44,000 or a move down to $36,000. He explained that this decision is based on a combination of factors, including the Momentum Reversal Indicator (MRI) support line on the daily chart, the 128-day moving average, and the top of the channel.

While acknowledging the possibility of a buying opportunity around $39,000, Vays emphasized the need for Bitcoin to either break above $44,000 or reach $36,000 for him to consider re-entering the market.

Vays dismissed the idea that Bitcoin’s recent performance is indicative of a pre-halving dump, a phenomenon observed in the weeks leading up to the reduction of miners’ rewards. The next halving event is expected in April, and Vays believes that historical patterns suggest this type of market movement typically occurs closer to the actual event.

“I don’t see us going into the $20,000s. $30,000 is my absolute bottom low. And in order for us to even get to $30,000, something catastrophic happens,” he asserts.

As of the latest update, Bitcoin is trading at $43,222, showing a nearly 2% increase in the last 24 hours. Investors and traders are closely monitoring the market, considering Vays’ warnings and insights as they navigate the cryptocurrency landscape.