According to the creator of the “Bollinger bands” trading indicator and seasoned analyst John Bollinger, although Bitcoin has lost 35% since its all-time high of $ 64,500, its current rate is actually logical. Note that this is the minimum price of the main and most famous digital currency over the past three months. Cryptocurrency capitalization fell to $ 821 billion (in February for the first time it was over $ 1 trillion). And its share in the digital money market is below 40%, for the first time in the last three years.
The fall began after Elon Musk announced that Tesla would no longer sell electric vehicles for Bitcoin. Another wave of panic in the market was launched by the news that China has banned financial institutions from providing services for storing and managing cryptocurrency. Another reason for the fall in the value of Bitcoin was the check by the US authorities of the Binance exchange.
Bitcoin, like other digital currencies, an unsecured asset not produced by the government, therefore, its fluctuations are often unpredictable and mainly depend on the information field, while macroeconomic indicators have almost no effect on it.
Bollinger: Bitcoin’s current price action ‘tells a lot’
In a tweet on May 18, Bollinger, who well known for his accurate Bitcoin (BTC) predictions, called for calm after the new volatility.
The analyst referred to Bitcoin’s previous record high of around $ 42,000. As you know, during the March rollback, Bitcoin bounced off exactly this mark.
Bollinger said that $ 43,000 is the logical level for BTC / USD.
The analyst is sure that the participants of the crypto market made hasty conclusions, considering that the large holders of the cryptocurrency decided to get rid of digital coins.
At the same time, analyst Carter Worth predicts that a further decline in the BTC / USD rate may lead to a fall to $ 29,000. Although the growth of the cryptocurrency rate to $ 75,000 is also possible, the expert added. But a negative scenario is still more likely.
However, Bollinger doesn’t think so. He noted that, with the exception of traders’ fears about China, which is increasing pressure from sellers, in general, Bitcoin is in a stable position. The analyst well-tuned about the future of Bitcoin.
Danny Scott, CEO of CoinCorner exchange, also believes that within 1-2 months we can see an incredible bull run.
However, when the market will reverse, no one knows yet. Perhaps the most daring crypto investors will see the current situation as a great time to invest.
The technical picture rather speaks of a continuation of the correction and a bearish trend. While fundamentally the prospects for the first cryptocurrency remain positive, according to analysts. It is logical for long-term investors not to leave the position and buy in small volumes when the price drops.
At the moment, Bitcoin continues to wait for positive fundamental news. And while there is none, it has a slight downward trend. An abrupt termination of the bull market seems unlikely, rather the fall will be bought out.