Bitcoin’s Bollinger Bands are being “released slowly,” which is being cited by cryptocurrency traders as a sign that the price may face some short-term declines.
Traders using a popular momentum indicator predict that the price of Bitcoin may drop lower in the near future without breaking the bull market momentum.
A technical analysis tool called Bollinger Bands uses price volatility to show possible trading entry and exit points. Essentially, traders want to sell close to the upper band and purchase close to the lower band.
The heightened daily volatility in the price range, according to traders, suggests that Bitcoin is poised for more declines.
In a post dated April 17, the 16,500 X followers of anonymous cryptocurrency trader Aqua were informed that the Bollinger Band squeeze was being lifted gradually and that all they needed to do was close below the support to see growth to 50Ks.
“No, the bull market is still in place. Simply having a rest. which is acceptable following an up-only move of a year,” they stated.
Meanwhile, technical expert Tony Severino speculates that if the market cycle is similar to 2017, Bitcoin’s price might see a lot of volatility.
In a post on X on April 16, he said, “If this cycle is like 2017, then the worst-case scenario is $53K at the Bollinger Band basis.”
“No, the bull market is still in place. Simply having a rest. which is acceptable following an up-only move of a year,” they stated.
Meanwhile, technical expert Tony Severino speculates that if the market cycle is similar to 2017, Bitcoin’s price might see a lot of volatility.
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In a post on X on April 16, he said, “If this cycle is like 2017, then the worst-case scenario is $53K at the Bollinger Band basis.”
In a post on X that same day, anonymous cryptocurrency trader Rekt Capital stated that Bitcoin must hold onto its current support levels “to avoid breaking down and equalling the lows of the March 2023 18% pullback.”
The buy-side support is forming strongly at a price of about 5% below Bitcoin’s current price of $64,242, according to trading site Material Indicators.
According to the fire charts, “secondary support laddered down to $50k, and bid liquidity based support is building in the $59k – $61k range.”
Approximately $2.2 billion in long positions will be liquidated if Bitcoin’s price drops all the way to $59,000, the lower end of that range. This information comes from CoinGlass statistics.
Moreover, there isn’t much area for price wiggle room for Bitcoin before a sizable number of short positions are eliminated.
A mere 1.15% increase in Bitcoin’s price from its current level to $65,000 will result in the liquidation of $551 million in short bets.
In the realm of cryptocurrency analysis, experts like Bollinger and Rekt Capital provide invaluable insights into the market’s dynamics and potential trajectories.
Bollinger, renowned for his Bollinger Bands indicator, often offers nuanced interpretations of Bitcoin’s price movements.
In a recent post on X, he drew parallels between the current cycle and the notable fluctuations observed in 2017.
By referencing the Bollinger Band basis, he highlighted a worst-case scenario of $53K, suggesting a critical threshold for Bitcoin’s price stability.
Bollinger’s analysis serves as a guiding light for investors, offering them a framework to anticipate and navigate through volatile market conditions.
On the same day, an anonymous cryptocurrency trader known as Rekt Capital echoed sentiments regarding Bitcoin’s current support levels.
Emphasizing the importance of maintaining these levels, Rekt Capital warned against the possibility of Bitcoin retracing to the lows witnessed during the March 2023 18% pullback.
This cautionary statement underscores the fragility of Bitcoin’s price action and the significance of key support zones in sustaining bullish momentum.
Together, the insights from Bollinger and Rekt Capital provide a comprehensive perspective on Bitcoin’s price dynamics, helping traders and investors make informed decisions amidst uncertainty in the cryptocurrency market.
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