Sunday was another dark red day for the price of bitcoin (BTC) and almost all altcoins. After the rumors from China surrounding a ban on mining and the statements of Elon Musk prior to that, the price of bitcoin collapsed like a house of cards. After an apparent stabilization in recent days, the price of the largest cryptocurrency fell again today by double digits to almost $ 30,000.
However, it is not yet hopelessly lost, according to experienced trader John Bollinger. Bollinger is best known as the brains behind the renowned technical indicator the “Bollinger Bands”. Bollinger envisions that bitcoin is currently making a “W” formation recovery. A “W” shaped bottom, or double bottom, is often seen in technical analysis as an early indication of a trend reversal, which will be welcomed with open arms at this point. The sentiment in the market currently consists mainly of fear.
Bollinger predicted the same double bottom when bitcoin hovered around the same $ 30,000 price point a few months ago. Soon after this double bottom, a price impulse arose that would eventually bring bitcoin above $ 60,000. Bollinger does not predict a similar impulse this time. He is limited to the short term. Of course, that does not mean that a speedy recovery of bitcoin is out of the question.
Whether the experienced trader Bollinger will once again be proved right remains to be seen. The fact remains that he has been wrong many times in the past. The comparison with his prediction from January of this year also has many similarities. I think I speak for most people when I say we can hope Bollinger is right.