The post "John Bollinger Expects Bitcoin to Continue to Trade in a Range Following the Pullback Attempt" first appeared on 36crypto.com News.
In a recent update, cryptocurrency market trader John Bollinger shared a message on the X social media platform that Bitcoin is in a consolidation phase. The cryptocurrency chart shows that the recent movement failed to demonstrate the expected acceleration even though the setup was favorable, as Bollinger mentioned.
Bollinger examines Bitcoin's market movements and trading implications.
John Bollinger, who popularized the Bollinger Bands trading tool, reacted to Bitcoin's performance after what seemed to have been a critical reversal signal. On June 25, he pointed at a lovely two-bar reversal at the Bollinger Bands' lower end, which typically signals the forthcoming rally. Such a pattern was traditionally one of the most preferred indicators by Bollinger, which he called his 'bread and butter' indicators as they were rock steady in pointing the market's direction.
However, this formation did not bring the expected change to the upward movement of #Bitcoin as was predicted. Earlier today, the benchmark digital currency revisited the $62,000 territory but lost the ground equally quickly, illustrating the nature of the environment.
Source: John Bollinger/X
The two-bar reversal that Bollinger has described consists of two bars of measurable trading that go beyond the present average true range or ATR, meaning a measure of volatility. For the reversal to have some chance of being effective, the first bar needs to close outside the 'Upper or Lower Bollinger Band' the next bar then goes below or above the same respective Bollinger Band. This structure is most effective for counter-trend arrangements since this provides the trader with a perfect opportunity to participate in the market.
Nevertheless, as it was considered previously, this week was somewhat more successful, and the price of Bitcoin has been fluctuating near $60,181, according to data from CoinGecko. The insignificance of following through the higher trajectory after the simple two-bar reversal indicates that the investor community is more prudently involved, probably in response to economic signals or concerns with market liquidity.
The scenario outlined by Bollinger points to a more subdued forecast for Bitcoin in the near term. It might be helpful for traders as it gives ground for expectation in a market that is often keen on steep fluctuations and speculative mania. Market participants will continue looking for new indicators indicating a change in the Bitcoin range.
In conclusion, the technical trend showed the possibility of a bullish run in Bitcoin, but the actual market signals posed the need to revisit it. John Bollinger's words can be taken as a navigator for investors when trading cryptocurrencies, especially highlighting that one needs to stay alert when trading. Once again, it will be interesting to observe the creation of such market scenarios by the investors and analysts all expecting to calculate the shift in the price of Bitcoin.
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