John Bollinger, the creator of the Bollinger Bands (BBs) trading indicator, is not unfazed by Bitcoin’s four percent price drop that spooked many bulls.
The trading guru has just tweeted that the $8,300 level is ‘logical place’ for the crypto king to find support.
After its most recent pullback, BTC is now sitting at its breakout level from where the top coin rocketed to $9,200 last week. This quick rally failed, with Bitcoin plunging by almost ten percent in only ten days.
Bollinger also pointed out that BTC moved to a middle band that is represented by the simple moving average (SMA). At this level, traders usually adopt a wait-and-see approach to catch a surefire signal that will allow them to catch another major market move.
Time will show whether Bitcoin will be merciful enough to end this bear massacre at $8,300 and climb higher. If BTC plunges below its SMA, it will almost certainly open the door for more downside pressure.
On a positive note, Bitcoin has recently broken out of a seven-month falling wedge, which is believed to be a harbinger of a bearish-to-bullish reversal.
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