In the always volatile world of cryptocurrencies, the past week has seen Bitcoin experience a marked downturn. The significant currency saw a drop of 7%, stooping as low as $59,478. The data, originating from CoinMarketCap, suggested that Bitcoin neared a rebound following this jarring dip, however, it has since tapered off, locked in a consolidation period between the $60,100 – $62,300 mark.
Tuned in to these atmospheric shifts, John Bollinger, the innovative mind behind the Bollinger Bands, offered his predictives regarding Bitcoin’s future course. Investors, rapt and on edge, are eagerly anticipating the much-expected cryptocurrency bull run — a surge in asset prices that significantly outpaces their typical performance.
Bollinger delved into the data on June 28, forecasting that Bitcoin is likely to continue along its current trajectory, trapped in purgatory within its present range. This theory springs from the lack of price bound following a two-bar reversal, a mysterious phenomenon spotted at the lower Bollinger Band.
For the uninitiated, Bollinger Bands comprise three horizontal lines (bands): the Middle Band, reflective of a 20-day moving average of an asset’s price; and an upper and lower band, representing the standard deviation of the price, multiplied by two. These technical indicators are often used to spot potential price-breakouts and identify price trends.
In trading parlance, a two-bar reversal crops up as a candlestick pattern, often suggesting a potential change in price direction. Such a pattern, upon appearing at the lower Bollinger Band, tends to signal a possible upward price bounce, attributed to an oversold condition.
However, the waters seem murky for Bitcoin. With no price gain following this development, it’s pointing towards continued fragility or price indecision, trapping BTC in a consolidating deadlock. Generally, such a sluggish price movement indicates either bearish outlook or uncertainty amongst investors, causing depleting buying pressure even at plummeting prices. This lack of price bounce hints at the current lower Bollinger Band being a weak support level, ramping up the risk of potential price breakdown.
Currently, Bitcoin is trading at $60,629, down by 1.31% in the past day. Yet, despite this, its daily trading volume has seen a surge of 15.95%, estimated at a substantial $24.8 billion. Bitcoin shed 11.69% of its value in June, with its price slipping below the $60,000 threshold. Even in the face of this stumble, investors remain stalwart, awaiting a price rally to signal the onset of the crypto bull season.
Strengthening this bullish sentiment, a cryptocurrency whale — an influential player capable of impacting prices — recently snapped up 20,200 BTC worth $1.23 billion, signifying strong confidence in the token’s future. The move has stoked optimism about Bitcoin’s potential to rebound and embark on a bullish run. Currently, BTC is fixed at $60,750 on a 4-hour chart, with the future teetering on the brink of trend-setting movement.
