John Bollinger, financial analyst and creator of the Bollinger Bands, recently shared his thoughts on the price movements of Bitcoin (BTC). His comments come at a time of significant volatility for the crypto market.
Over the past few weeks, the price of Bitcoin has experienced considerable perturbations. It quoted around $70,000 before suddenly dropping more than 4%, causing epic market liquidation and anxiety among traders. This drop followed a period of price consolidation in which Bitcoin seemed poised for a new high.
Bollinger addressed the market’s belief that extended periods of consolidation can lead to significant price gains. He referenced an old market principle, “the bigger the base, the higher in space,” suggesting that a strong base period could lead to significant upside. This idea is particularly relevant given the crypto market’s tendency to swing between fear and greed.
I wish I could remember the maxim: The bigger the base the higher… Anyone?
— John Bollinger (@bbands) June 12, 2024
His latest comments are in line with his previous predictions. About a month ago, when Bitcoin was trading near $70,000, Bollinger hinted at a possible price pullback. That prediction came true as the price fell to $67,000, where it is currently trading. The key question now is whether BTC will hold this level or see further changes.
Does Bollinger really expect the price of the major cryptocurrency to fly into space after such a prolonged test of traders’ nerves? It will be interesting to see what happens next.
