In a noteworthy turn of events amid Bitcoin’s recent upward momentum, a prominent cryptocurrency market analyst has taken notice and warned that a BTC price drop is on the horizon. John Bollinger, the well-known analyst and inventor of the technical analysis tool Bollinger Bands, made the bold statement that a BTC price drop is waiting to happen due to a bearish pattern on the Bollinger Bands tool.
John Bollinger's statement quickly gained significant attention across the crypto market, coinciding with the drop in BTC prices over the past 24 hours. Let’s dive deeper into analyst insights and BTC’s current price movement.
John Bollinger says the pullback won't be long-term
In Bollinger’s post on X, the analyst highlighted a two-bar reversal forming at the upper Bollinger band on the BTC/USD chart.
By way of background, Bollinger Bands are a widely used technical analysis tool. Bollinger bands consist of an intermediate band and two outer bands. Bollinger notes that a bearish pattern is forming in the upper band, suggesting a possible consolidation or pullback in prices.
But the analyst added, “We're not bearish here, just short-term concerns,” suggesting that any pullback or sideways trade may not last long. Overall, Bollinger's comments regarding BTC's price movement suggest a glimmer of optimism for the token's price movement in the long term.
If BTC's price trajectory becomes solid, it will likely trade within a narrow range going forward. On the other hand, price declines are often around 5% declines. In particular, it is worth noting that the token's price movements have actually weakened, parallel to what analysts have said about BTC's price movements.
Also read: If Bitcoin price reaches this level, it could face a price correction
BTC price slip
At the time of writing, the Bitcoin price chart is down 1.75% in the past 24 hours and is currently trading at $69,645. The 24-hour low was $69,191.12 and the high was $70,876.14.
CoinGlass data noted that BTC futures and options OI fell 2.17% to $34.89 billion, further revealing that derivatives trading volume slumped 42.19% to $56.42 billion. This data coincides with the decline in BTC price, highlighting a decline in market appeal for Bitcoin among investors, which could lead to further volatility.
However, the RSI remains at 61, suggesting that broader technicals are painting an optimistic scenario for BTC, which may further align with analysts who claim the pullback is short-lived and that the long-term outlook post-halving is bullish.
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