In a cryptic tweet, John Bollinger, the creator of Bollinger Bands, says that Bitcoin cold sees ‘a nice rally’ if the flagship cryptocurrency manages to ‘wax its ears’ and avoid hearing the ‘Siren’s song.’
Bollinger’s reference to the siren, the perilous creature from Greek mythology that lures sailors and sings them to a shipwreck, apparently indicates that the BTC price in on the verge of reaching its inflection point.
At the time of writing, the coin is trading at $9,427 on the Bitstamp exchange after the bulls failed to break above the $9,600 resistance level.
Bitcoin's V-shaped recovery was predicted by Bollinger
Bollinger, who has been in the trading industry for almost five years, has gained prominence for creating the Bollinger Bands (BBs) indicator. The price instrument is handy for spotting volatile price moves that could potentially change the ongoing trend.
In early March, when Bitcoin started to crash precipitously, he said that the cryptocurrency was acting against his expectations. He believed that it would be able to act as a hedge asset during crises.
However, on Apr. 20, when Bitcoin was sitting at $6,800, he predicted a potential price squeeze (a significant move after a period of back-and-forth trading). The BTC price moved to 40 percent in just ten days since his prediction.
Holders accumulating like it's early 2017
While Bollinger’s tweet is quite vague, it’s clear that he expects significant price appreciation in the near term.
Historically, BTC tends to start a major rally after every reward cut that reduces its supply by 50 percent.
According to data provided by Glassnode, the holding behavior of investors is similar to the previous bull market, with 60 percent of the coin’s total supply not moving.