Predicting what happens in the markets is a task that requires a lot of attention, and that has a considerable margin of error. Obviously, those with more experience and preparation in technical and fundamental analysis have more opportunities. However, when it comes to the cryptocurrency market and Bitcoin it is a bit more difficult considering the nature of the asset. But, this time John Bollinger has given some signs that Bitcoin buyers should be on the alert.
Bitcoin has once again found itself in dangerous waters, dropping to just $ 47,350 in 24 hours, according to CoinDesk. In that sense, at the time of writing the publication, it has lost 4.87% compared to yesterday. Nonetheless, technical charts suggest that support is close, which could stabilize the pullback and maintain the breakout move above $ 45,000.
Certain indicators suggest a neutral sentiment in the market. For example, the relatively low funding rates in the Bitcoin futures market indicate less exuberance among investors. However, Bollinger places even more emphasis on this necessary caution.
In his recent tweet, John Bollinger, the inventor of Bollinger Bands, states that traders should “be on the alert.” While the analyst says there is no confirmation as of now, he claims that aggressive traders may consider opening short positions.
Meanwhile, long-term holders could use the cryptocurrency’s price drop as an opportunity to hoard more Bitcoin, according to Bollinger.
The leading cryptocurrency has failed to regain the fundamental level of $ 51,000. Compared to two days ago, BTC has so far dropped nearly 6 percent from its local high of $ 50,562. The renewed weakness has stoked fears of a possible bullish-bearish reversal.
Additional comments
All of this happened even though the MicroStrategy company invested $ 177 million in Bitcoin. They definitely couldn’t save the day. In fact, Bitcoin’s pullback deepened shortly after the announcement. Bitcoin’s correction has dragged down the rest of the market, with Cardano (ADA), Dogecoin (DOGE) and Polkadot (DOT) being the biggest laggards in the top 10.
On the other hand, the seven-day moving average of the Bitcoin hashrate stood at 127.5 exahashes per second on Monday, August 23. This is an increase from the local low of 84.3 exahashes per second on July 2, according to data from Glassnode. “The recovery of the hashrate is a sign that some mining operations are beginning to come back online in new locations and that the worst of the crackdown is probably over,” wrote Coin Metrics.
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