Bitcoin’s price uptrend, which had been steadily climbing towards $112K, could be nearing its end due to consistent rejections from the upper Bollinger Band, according to recent analysis.
John Bollinger, who created the Bollinger Bands volatility metric, has been observing Bitcoin’s price action and noticed several rejections from the upper Bollinger Band since April. With this pattern in play, he predicts the potential end of the uptrend.
In a series of posts on June 13, Bollinger confirmed the completion of three distinct phases of Bitcoin’s uptrend, each characterized by a “push” higher followed by a brief top and consolidation phase. Each push also coincided with a trip to the upper Bollinger Band.
However, Bitcoin’s failure to sustain its all-time highs and continue its upward trend has led Bollinger to declare that the local trend could be over. “Three Pushes now confirmed,” he stated, adding that this merely indicates the end of the previous trend and could suggest a reversal or consolidation in the future.
The Bollinger Bands are a widely used volatility indicator in the cryptocurrency market. They help in identifying potential periods of volatility, which are often preceded by a narrowing of the bands. Bitcoin has experienced several such “narrow” periods recently.
Bitcoin’s price discovery now faces several challenges. Apart from the resistance from the upper Bollinger Band, large blocks of ask liquidity have been placed between the current all-time highs and $120,000. Additionally, geopolitical events and the implications of the US-China trade deal have added to the complexity of the situation.
Despite these challenges, Bitcoin has shown resilience, which, according to QCP Capital, underlines the persistent institutional demand for the cryptocurrency.
Please note: This article does not provide investment advice or recommendations. All investments and trading moves come with risks. It’s essential to conduct your own research before making a decision.
