Bollinger Bands’ inventor and trading expert John Bollinger made an interesting comment about the latest evaluation of Bitcoin (BTC). He warned about the possibility of the largest cryptocurrency reaching its peak.
John Bollinger, the name behind Bollinger Bands widely used in technical analysis, emphasized in his latest comment about Bitcoin on his personal X (formerly Twitter) account that the price may have reached a local peak.
Bollinger had previously stated that the largest cryptocurrency had shown significant strength due to two bar reversals in the middle Bollinger Bands on November 21 and December 6. This observation came at a time when Bitcoin had been constantly making new highs throughout the year, making headlines.
Bollinger gives significant weight to his analysis due to creating Bollinger Bands, an important tool for measuring volatility. These bands, formed by moving averages and two standard deviation levels, indicate a strong market trend when assets like BTC are trading above this band.
The well-known figure who foresaw a breakout from the upper band of Bollinger Bands in September and expected the price to rise has seen this prediction successful so far.
Bitcoin is showing signs of stabilization after briefly surpassing $44,000. The cryptocurrency market has not yet entered the “Greed” territory, which is often associated with market peaks. This indicates that BTC and altcoins may continue to rise for a while longer.
The current market sentiment is at the “Greed” level due to the market constantly hovering around the 70 levels. This indicates that investors and traders are currently engaged in cautious optimism.