John Bollinger, a prominent technical analyst and creator of Bollinger Bands, shared his optimistic outlook for Bitcoin amid the current selloff. Speaking on social media platform
The rise and fall of Bitcoin
Bitcoin experienced a notable rally on Friday, rising 5.52% and briefly surpassing the $42,000 milestone. Despite falling to $41,429 after that, the cryptocurrency rebounded to the $41,700 level. This uptrend follows a significant 7.86% gain since February 23 and shows resilience following profit taking from ETF approval.
The “selling on the news” phenomenon began with the SEC’s approval of a spot Bitcoin ETF issuer, causing the cryptocurrency to briefly soar above $42,000. However, when traders took profits and put their money into newly introduced Bitcoin ETFs, a sudden crash occurred.
Interestingly, Grayscale Bitcoin Trust (GBTC) turns out to be an exception. Once the lock-up period ended, customers withdrew their Bitcoins and GBTC witnessed huge outflows among nine issuers. At the same time, a major Bitcoin movement occurred on Coinbase Institutional, with approximately $1 billion worth of Bitcoin transferred, indicating an increase in market activity.
Bollinger’s positive sentiment stands in contrast to the general skepticism and suggests a possible change in near-term market dynamics. His observations highlight the need for strategic analysis in navigating Bitcoin’s evolving landscape and signal a departure from traditional “selling on the news” strategies.
The conclusion is
Evolving trends in the cryptocurrency market, including recent spikes and outflows due to active Bitcoin addresses, suggest the impact of “selling news” from traders. Bollinger suggests this trend will end soon.