John Bollinger on Bitcoin Price: "We Need to See Follow-Through or We'll Be Setup for Real Trouble, a Head Fake"

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Tue, 07/21/2020 - 17:58
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Alex Dovbnya
The Bitcoin bulls need to try harder in order to avoid a painful correction, according to John Bollinger
John Bollinger on Bitcoin Price: "We Need to See Follow-Through or We'll Be Setup for Real Trouble, a Head Fake"
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The Bitcoin price needs to see “follow-through” in order to continue pushing higher, says legendary trader John Bollinger in his latest tweet

Otherwise, the flagship cryptocurrency will be in serious danger of facing a major correction.

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Not out of the woods  

The Bollinger Bands (BBs) creator presumes that Bitcoin’s recent uptick that pushed it above the $9,400 for the first time in more than a week could end up being a “head fake”: 

"Now we need to see follow through or we'll be setup for real trouble, a Head Fake." 

The term is used to describe a scenario when the price action of a certain asset suddenly changes its direction, trapping some traders on the wrong side of the market.

If today’s uptick, which Bollinger claims is the “the first lift” of the impending BB squeeze, turns out to be nothing more than a flash in the pan, this would create a very unfavorable setup for the bulls.

At press time, the leading cryptocurrency is sitting at $9,366 on the Bitstamp exchange after touching an intraday high of $9,442 at 13:28 UTC. 

BTC
image by tradingview.com

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Spotting head fake trades    

As reported by U.Today, Bollinger warned the bears about a potential trap in in October 2019 just one week before the Bitcoin price skyrocketed by 40 percent in a single day.

In early June, he urged traders to be “cautious” after a failed rally to $10,400.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.