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According to Bollinger bands founder John Bollinger, current BTC price activity is unsurprising considering recent support and resistance focuses.
Bitcoin’s price has dropped by 35% from its all-time peak of $64,500, but it is still “logical.”
According to John Bollinger, the founder of the Bollinger bands trading indicator, this is the case.
Bollinger: Current price action “can tell a lot”
In a tweet on May 18, Bollinger, who is well known as a source of Bitcoin (BTC) analysis despite decades in the market, called for calm following fresh volatility.
“~43,000 is what we call a logical level for $BTCUSD. It is defined by the January peak and the March trough,” he explained.
“Price action at logical levels can tell the smart trader/analyst who is paying attention a lot.”
Bollinger pointed to Bitcoin’s previous all-time high of about $42,000, which it also bounced off of in early March after another retracement.
As previously discussed on May 18, the focal stage acts as a natural support line in the sand, representing the typical 35 percent correction from a peak that Bitcoin has seen in its history.
Even for more pessimistic observers, the value of the $42,000 mark cannot be overstated. Among them was CNBC daily Carter Worth, who forecast that a further drop in the BTC/USD pair could take it as low as $29,000.
No bears to see here
Meanwhile, the Bollinger bands indicator continues to precisely watch BTC/USD. Its constricting and expanding bands have successfully predicted market volatility up and down, including the recent shifts. Using a single standard deviation, the bands are fixed around a 20-day simple moving average.
Bollinger has had his own moments of Bitcoin market foresight.
With the exception of investor fears about China, Bitcoin is in a mostly resilient mood — and many other metrics and commentators alike are optimistic on the future.
“Bitcoin still on track as always. We could see an incredibly bullish month or 2 ahead,” Danny Scott, CEO of exchange CoinCorner, added on May 18, comparing 2021 to previous bull cycles.