John Bollinger Issues Bitcoin 'Head Fake' Warning


John Bollinger Issues Bitcoin 'Head Fake' Warning


  • A bear trap? 
  • Bollinger’s prescient prediction 

John Bollinger, the legendary chartist known for creating the Bollinger Bands indicator, recently took to the X social media network to issue a technical analysis warning.

He has noted that Bitcoin and several other cryptocurrencies are setting up a “head fake” following a Bollinger Band Squeeze.

The term, which originally comes from basketball, refers to a certain asset sharply moving in one direction before reversing course, thus catching traders off-guard. 

A bear trap? 

On Aug. 3, Bitcoin plunged to a multi-week low of $111,919 on the Bitstamp exchange before recovering to $115,732 earlier this week. 

Bollinger likely refers to this downside headfake, which ended up being a trap for bears.

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Notably, the legendary technical analyst added that the same pattern cannot be observed on the charts of cryptocurrency exchange-traded funds (ETFs) since they do not trade during the weekend. 

Bitcoin is currently changing hands at $115,229 on the Bitstamp exchange. 

Bollinger’s prescient prediction 

As reported by U.Today, Bollinger correctly predicted that Bitcoin was setting up for a breakout in early July. 

Bitcoin went on to reach its current all-time high of $122,838 on July 14.



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