Trading maverick John Bollinger, the brains behind the widely-used Bollinger Bands, took a moment to ponder over his latest Bitcoin commentary on the X social media network.
"When one makes a comment like the one I did yesterday, one must always consider the possibility that one has marked THE TOP. This is what makes life interesting," the legendary chartist said.
Predicting a Bitcoin breakout
On Wednesday, Bollinger noted that the flagship cryptocurrency was demonstrating significant strength due to a two-bar reversal at the middle Bollinger Band on Nov. 21
This observation comes at a time when Bitcoin is making headlines by consistently setting new peaks for the year 2023.
Bollinger's expertise, particularly his creation of the Bollinger Bands, a key volatility measuring tool, adds significant weight to his analysis. These bands, which are comprised of a moving average and two standard deviation levels, suggest a strong market trend when an asset like Bitcoin trades outside of them.
In September, the famous trader correctly predicted an upper-band breakout.
Cooling off
After the recent surge, Bitcoin's market shows signs of stabilizing around the $44,000 mark.
Interestingly, it has not yet entered the "Extreme Greed" territory, often linked with market peaks.
The current sentiment analysis places the market in a "Greed" state, with scores consistently in the 70s. For now, traders and investors remain cautiously optimistic.