Legendary market trader John Bollinger has shared some new insights into the price action of bitcoin (BTC), the industry’s flagship asset, which has experienced a bearish correction for two days in a row. Presenting a chart on X, Bollinger, known as the creator of the Bollinger Bands indicator, said that bitcoin’s growth was very overextended and that a pullback was due.
The legendary trader shared a chat showing the growth trends of BTC/USD since at least July 10th. During this time period, bitcoin has experienced a predominantly uptrend, with momentum picking up from mid-October to the present. At the moment, the charts show that the price of bitcoin is dropping away from the upper Bollinger Bands, indicating an impending change in trend.
Although the current price is still far from the middle neutral band, John Bollinger said that attention can now be paid to where the coin will register its support levels. Since on-chain data always complements each other, the reversal of bitcoin’s price in the $42,000 to $42,500 price range, as shown by John Bollinger, is in line with Ali Martinez’s earlier reversal.
While this reversal is considered a healthy play by most analysts, eyes are now on whether or not BTC will fall back below the $40,000 range.
Contrasting Technical and Fundamental Positions on Bitcoin
Bitcoin is considered to be overbought at the moment, as the on-chain data suggests; however, the current fundamentals suggest that now may be the time to accumulate more of the premier currency.
If the approval window holds true, chances are that BTC will see a more impressive uptrend if the United States Securities and Exchange Commission (SEC) approves a spot bitcoin exchange traded fund (ETF) product.
This remains the ultimate catalyst, with the second being the hype surrounding the impending halving of bitcoin.
