Binance

John Bollinger, the creator of the widely used Bollinger Bands, believes there could be a Bitcoin (BTC) bear trap in the near-term.

In a tweet on Wednesday, Bollinger called for a head fake after Bitcoin dropped from $8,200 to $7,900.

A quick look at the chart Bollinger provided shows a tightening Bollinger Band range, which could be a setup for an explosive move in either direction. Bollinger’s head fake call indicates that he believes a bear trap may be forming as BTC appears to be about to break down further, but may, in fact, be about to break out to new highs.

BTC/USD 1-day chart (John Bollinger)

Taking a more bearish tone, AngeloBTC, the top trader on BitMEX, is currently calling for BTC to hit the $6,000 range before he plans to add to his long position. This would be a further breakdown from current levels and more than 50% retrace from yearly highs.

Bitcoin is currently down 1.05% on the day to $8,053, giving the cryptocurrency a $144.93 billion market cap.

More: John Bollinger’s Tweet
Recent: eToro’s New Twitter-Based Crypto Portfolio Averages 123% Annually

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

Voyager

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.