Experienced trader John Bollinger, renowned for creating Bollinger Bands, has shared a word of caution regarding the immediate future of Bitcoin.
Bitcoin has experienced a significant surge of nearly 13% in the last week and a half, reaching the impressive milestone of $71,000 per BTC. This upward momentum has prompted analysts and traders to rethink their strategies as Bitcoin approaches its all-time high of $74,000.
Despite the prevailing bullish sentiment, Bollinger has identified a potential red flag on Bitcoin’s price chart, indicating a possible pullback or period of consolidation. He has pointed out a two-bar reversal pattern at the upper Bollinger Band, a signal often associated with a temporary market correction.
Bollinger Bands are a widely used tool in trading, aiding in the identification of volatility and potential price reversals by plotting standard deviations around a simple moving average.
While Bollinger’s analysis raises short-term concerns, he maintains an optimistic outlook on Bitcoin’s long-term prospects, relying on technical indicators rather than a fundamentally bearish perspective.
This viewpoint reflects the current market sentiment, where optimism for Bitcoin’s future growth is tempered by caution regarding short-term volatility.
Meanwhile, Willy Woo, a crypto analyst and co-founder of VC firm CMCC, has highlighted a different aspect of Bitcoin’s market behavior. In a post on May 22, Woo observed that despite Bitcoin’s price remaining relatively stable over the past two months, there has been a quiet accumulation of available BTC without a corresponding increase in paper BTC.
Woo believes that it is only a matter of time before Bitcoin surpasses its previous all-time highs.
On the same day, the Bitcoin Fear and Greed Index registered at 76, indicating an extreme level of greed among traders in the market, leading to increased buying activity. This phenomenon often results in higher price movements as people accumulate more cryptocurrency during market uptrends.
The recent price movements and insights from analysts come at a crucial juncture for Bitcoin, which is currently trading just 6% below its peak price. The market is eagerly awaiting to see if Bitcoin can surpass its previous high, a milestone that appears increasingly likely based on the current trajectory.
At the time of writing, the world’s largest crypto asset was trading at $69,973, showing a slight 1.5% decline in the last 24 hours according to data from CoinMarketCap.