Bitcoin has had a depressing week following the approval of spot Bitcoin ETFs in the US, becoming what many feared might be a sell-the-news event. The top crypto dipped below $38,700 during the week for the first time since early December, following a sell-off from digital asset fund manager Grayscale. However, the crypto is now showing signs of recovery and is now trading above $42,600.
According to a social media post by John Bollinger, the legendary creator of the Bollinger Bands, Bitcoin might be done with the selloff, suggesting that the downtrend is already at a bottom.
Bollinger’s Bullish Stance On Bitcoin
Bollinger Bands is one of the most popular technical analysis tools used by traders today. The legendary trader and financial author is known in recent times for his bullish affiliation with BTC. Bollinger recently took to social media platform X to reiterate this bullish stance, suggesting that Bitcoin’s recent sell-the-news event could be coming to an end.
OK, looks like we might be done with this “sell on the news” cr@p? $btcusd
— John Bollinger (@bbands) January 27, 2024
While Bollinger did not provide any further details on how he came about this prediction, it probably came from his evaluation of the current state of the digital asset. Furthermore, his reputation as a well-known trader adds credibility to his statement.
The technical analyst had made a similar bullish prediction earlier in the month with a price chart shared on social media. According to a price chart posted on X on January 4th showing the Bollinger Bands indicator, he noted that BTC is on its way to breaking higher. Bitcoin was trading at $44,130 at this point and spot ETF applications were yet to be approved.
I think it breaks higher. $btchttps://t.co/vH9yoFa2Ut
— John Bollinger (@bbands) January 4, 2024
What’s Next For Bitcoin?
At the time of writing, BTC is trading at $42,499, up by 2% in the past 24 hours. If Bollinger is right and Bitcoin has found its bottom, it means the worst of the correction is likely over, and Bitcoin is on its way to climbing back up.
Bitcoin (BTC) is currently trading at $42,499. Chart: TradingView.com
Bollinger’s bottom prediction contradicts the prediction of some well-known crypto analysts. Recent happenings seem to have turned very bullish predictions before the spot ETFs came online into predictions of a downtrend in the short term. Despite this, most agree on a bullish price movement in the long term, especially with the approach of the next Bitcoin halving.
According to Arthur Hayes, co-founder of crypto exchange BitMEX, Bitcoin could continue this consolidation before finding a local bottom between $30,000 and $35,000. Chris Burniske, another analyst and co-founder of Placeholder, a venture firm specializing in cryptocurrencies, believes a BTC bottom would be formed between these price levels but could also fall to mid $20,000 before a sustained price surge.
Featured image from Pexels
Scott Matherson
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