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John Bollinger, the creator of one of the most actively used technical indicators Bollinger Bands has tweeted that he is now bullish on the world’s largest cryptocurrency Bitcoin (BTC).
John Bollinger is Bullish on Bitcoin (BTC)
On Sept. 8, Bitcoin (BTC) plunged as much as 17% to its lowest level this month to trade at an intraday low of $42,900. The price crash comes amid El Salvador officially accepting the digital asset as a legal tender.
In response, legendary trader John Bollinger called Bitcoin’s latest price crash “epic” while noting that the cryptocurrency touched both the upper and lower Bollinger bands the same day.
John Bollinger created and copyrighted the Bollinger bands during the 80s. The indicator consists of a middle band, which is a simple moving average whose default is set at 20-periods and two outer bands set at two standard deviations below and above the middle band.
It’s one of the most widely used technical indicators in the world which is used to determine whether the price is high or low on a relative basis. For instance, if the price is above the upper band, the asset is assumed to be overbought while if the price drops below the lower band, the asset is perceived to be oversold.
Bitcoin Preparing for Bullish Breakout
Plan B, a popular crypto analyst, also made a bullish forecast for Bitcoin using a stock-to-flow cross-asset (S2FX) forecasting model, saying that the cryptocurrency has the potential to reach $100,000 by the end of the year.
Bitcoin (BTC) is currently trading around $46,310 at the time of writing, with a market capitalization of $871 billion. The flagship cryptocurrency alone represents more than 40% of the entire crypto market.
While the digital asset is considerably down from its highs during the beginning of the year, Bitcoin (BTC) has made its way to recover some of its lost gains in the past month.