John Bollinger, the renowned financial analyst and creator of the Bollinger Bands indicator, has indicated a possible end to Bitcoin‘s current downtrend. His analysis, shared on social media, suggests that the selling pressure on Bitcoin might be subsiding, hinting at an upcoming bullish phase for the cryptocurrency.
Bitcoin recently witnessed a spike above $42,000, stirring excitement among investors. Despite a subsequent pullback, the market shows signs of continued recovery. At the time of the report, Bitcoin was trading at $41,858, marking a 1.50% increase over 24 hours.
Market Indicators and Investor Movements
Bollinger’s insights are based on the performance of Bitcoin and the behavior of market indicators. He suggests that the intense selling pressure, which has been a barrier to Bitcoin’s growth, may be easing, potentially leading to a bullish trend.
The approval of 11 spot Bitcoin ETFs by the U.S. Securities and Exchange Commission on January 10 led to a temporary price surge to $49,000. However, the enthusiasm was short-lived as Bitcoin’s value began to decline, influenced by significant outflows from Grayscale Investment’s GBTC after it was converted to a spot ETF.
Investors have been moving away from GBTC, partly due to high management fees, and opting for spot Bitcoin ETFs from firms like BlackRock, Fidelity, and others. The end of a mandatory lock-up period for GBTC investors also triggered a wave of sell-offs, contributing to the downward pressure on Bitcoin’s price.