The creator of Bollinger Bands warns of Bitcoin bulls because the price of BTC is below $50,000

Bitcoin (Bitcoin) After bottoming out on July 20 and rebounding below US$30,000, the price rebounded by more than 60% to US$47,486, triggering expectations that the bull market will expand to US$100,000. But for John Bollinger, a well-known contributor in the field of financial analysis, investors should avoid buying benchmark cryptocurrencies at current prices.

Bullinger suggested in his Tuesday Twitter Investors can ensure their Bitcoin profits or establish hedging positions elsewhere to offset potential BTC/USD downside risks. In explaining his cautious outlook, Bollinger pointed out that “aggressive traders can consider shorting”, which in turn may push the price of bitcoin down in the next trading day.

“Hodlers can watch [to] If we see them, please add a lower level. There is no confirmation yet, please stay alert. “

Can Bitcoin reach $41,000?

The statement appears as Bitcoin undergoes a correction After regaining a three-month high of $50,505. In doing so, the cryptocurrency fell 6.70% to $47,122, indicating a strong bearish sentiment near the $50,000 price zone.

Scott Melker, author of “Wolf Den Newsletter”, expected In the next trading day, Bitcoin will fall to the range of US$41,000 to US$42,000. Nevertheless, independent market analysts assert that this kind of correction is still healthy-a “heavy load zone” that will lead to a price rebound.

Scott Melker sets BTC/USD every week. Source: TradingView

Another anonymous market analyst, CryptoHamster, also holds a similar bearish outlook, but their analogy is based on a technical model called an ascending channel. The anonymous analyst stated that Bitcoin is testing the support trend line of the channel to look for a potential downward breakthrough trend.They Tweet:

“Bitcoin may rebound again (see chart below), otherwise there will be a downside breakout. It will largely define the medium-term trend.”

Bitcoin ascending channel set by CryptoHamster. Source: TradingView

The ascending channel short target in CryptoHamster’s BTC/USD chart is below $41,000.

Bollinger’s technical indicator, called Bollinger Bands, found that Bitcoin remained above the 20-day simple moving average as a temporary support at around $46,750. Nonetheless, a break of the so-called signal line may push BTC/USD below the Bollinger Band near $42,670, as shown in the chart below.

Bitcoin daily price chart with Bollinger Bands setting. Source: TradingView

Bitcoin forecast for 100,000 USD

Bitcoin’s correction from $50,000 does not necessarily mean the beginning of a bear market, especially as analysts continue to predict that the cryptocurrency’s valuation will reach six figures.

For example, Lyn Alden, the founder of Lyn Alden Investment Strategy, Tell Business insiders believe that Bitcoin has incredible potential and will reach $100,000 next year, noting that the cryptocurrency is “still in the early to mid-stage of its long-term development trajectory.”

related: The goal of options traders is to earn $100,000 in Bitcoin by the end of 2021-is there a chance?

Mike McGlone, senior commodity strategist at Bloomberg Intelligence, also set the same price target for Bitcoin, hoping that it can attract funds from the gold market. Iqbal Gandham, vice president of trading at Ledger, also stated that Bitcoin will soar to $100,000 in the second half of 2021.He told Market observation:

“With all the movement, whether it’s the noise surrounding ETFs or countries that adopt BTC as legal tender, one can easily assume that this is where BTC will rest by the end of the year.”

The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Every investment and trading action involves risk, and you should conduct your own research when making a decision.