Bitcoin may have lost 35% since its all-time high of $ 64,500, but its current price is actually “logical”.
This is the case, according to veteran analyst John Bollinger, the inventor of the trading indicator for Bollinger bands.
Bollinger: Current price movement “can say a lot”
In a tweet on May 18, Bollinger, who is known as a source for Bitcoin (BTC) analysis despite decades of market maturity, called for calm after new volatility.
“~ 43,000 is what we call a logical level for $ BTCUSD. It is defined by the January high and the March low, ”he explained.
“Price actions at logical levels can tell the intelligent trader / analyst who is paying a lot of attention.”
Bollinger pointed to Bitcoin’s all-time high so far at around $ 42,000. This is also a level where it bounced back on another retracement in early March.
As Cointelegraph also reported on May 18, the focal plane is something of a natural support line in the sand – it represents the average correction of 35% from a high Bitcoin has seen throughout its history.
Even for more bearish voices, the significance of the $ 42,000 level cannot be ruled out. Among them was CNBC regular Carter Worth, who predicted that another downtrend for BTC / USD could bring the pair to just $ 29,000.
There are no bears to be seen here
Meanwhile, the Bollinger Band indicator itself continues to track BTC / USD with precision. The constraining and widening bands have successfully called episodes of price volatility up and down, including last week’s moves. The bands are set around a simple 20-day moving average using a single standard deviation.
Bollinger himself also had his bitcoin price clairvoyance moments.
With the exception of traders’ concerns about China, which are increasing selling pressure, Bitcoin is broadly in a stable mood – and several other indicators and analysts remain optimistic about the future.
“Bitcoin is still on track. We could see an incredibly bullish month or two ahead of us,” added Danny Scott, CEO of Exchange CoinCorner, on May 18, comparing 2021 to previous bull cycles.