A trader who created the widely used technical indicator of the Bollinger Bands believes Bitcoin (BTC) is on the verge of a bullish breakout.
John Bollinger tells his 233,800 followers on the social media platform
The trader shares a chart that suggests Bitcoin needs to clear its diagonal resistance at $65,000 to confirm a pattern break.
“Nice little W pattern on the weekly BTCUSD chart. I’ve drawn a regression channel to highlight the flag that is forming. Bullish stance, awaiting confirmation.”
Based on the trader’s chart, he seems to suggest that the last line of defense for BTC bears is the range high of the Bollinger Bands, which is hovering around $73,000.
Traders use the Bollinger Bands to identify potential periods of increase in volatility and to determine whether an asset is overbought or oversold.
John Bollinger isn’t the only trader who sees the $65,000 area as a potential pivot point for Bitcoin. Pseudonymous analyst Altcoin Sherpa tells 223,400 followers on social media platform X that Bitcoin will break its bearish market structure if it rises above the price level.
“BTC in a crucial area – break $65,000 and we have made a higher high, breaking the market structure in one day. One-day EMAs (exponential moving averages) also look quite strong.”
Fellow analyst Josh Rager too sees a bull flag for Bitcoin with a trend shift area at $65,000.
“I want to see the price close higher before I take more risk.
Or just wait to add while the market plays out.
I think patience will be important in the coming weeks.”
At the time of writing, Bitcoin is trading at $64,364.
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Generated image: Midjourney
