Bollinger Bands' Creator Makes Critical Bitcoin Commentary!
Legendary trader John Bollinger suggested in his latest post on X account that Bitcoin will continue to consolidate within its current range. Bollinger highlighted that the leading cryptocurrency failed to bounce back in price following a two-bar reversal at the lower Bollinger Band.
On June 25th, John Bollinger, the name behind one of the most popular trading tools, Bollinger Bands, stated that a “nice” two-bar reversal should have been sufficient for a price increase. The chart analysis expert suggested that the cryptocurrency could potentially test previous highs. However, this scenario did not materialize.
No bounce after a Two-Bar Reversal at the lower Bollinger Band, more consolidation expected. #Bitcoin https://t.co/vIH2wo4CsJ
— John Bollinger (@bbands) June 28, 2024
Legendary trader John Bollinger highlighted in 2021 that a two-bar reversal is one of his favorite trading patterns, often referring to it as the “bread and butter” trade.
According to the chart analysis expert, an ideal two-bar reversal occurs when both bars have a larger than average true range (ATR), which is a popular indicator for measuring market volatility. Bollinger suggests that both bars should be wide-ranging bars. The first bar should close outside the upper Bollinger Band, followed by the second bar closing inside (or vice versa). This strategy is particularly useful for Bitcoin countertrend trading.
As per CoinGecko data, Bitcoin is currently trading around $60,181. Earlier today, it briefly reclaimed the $62,000 level, but this upward momentum quickly diminished.
Note: This is not investment advice
