Veteran crypto analyst and trader Tone Vays says he sees Bitcoin going through a major capitulation event very soon.
In a new strategy session, Vays says that he’s been more or less bearish on the world’s biggest crypto since late May, when it plunged over 50% to test $30,000.
Vays thinks Bitcoin has been trading in a descending triangle, which is a technical formation that suggests a move to the downside once the price breaks the pattern’s support.
The trader says he’s not worried about the Grayscale Bitcoin Trust (GBTC) unlock, which will allow investors of the crypto asset manager to sell their GBTC shares.
Last month, analysts at JP Morgan predicted that the unlocking of GBTC shares will be a bearish catalyst for Bitcoin.
According to Vays, however, the GBTC unlock likely won’t affect the price.
Vays says that after a 20% drop in Bitcoin, he thinks BTC’s strong fundamentals will help the leading cryptocurrency ignite a recovery.