Seasoned trader John Bollinger recently commented on Bitcoin's (BTC) current market trajectory, arguing that the flagship cryptocurrency is showing "signs of strength." This comes as Bitcoin keeps casually printing new 2023 peaks.
A two-bar reversal
Bollinger's analysis is based on his eponymous technical analysis tool, the Bollinger Bands, which he devised as a measure of volatility.
These bands consist of a moving average (the middle band), typically over 20 periods, and two outer bands representing standard deviation levels above and below the central average.
When the price of an asset, like Bitcoin, moves outside these bands, it suggests a stronger market trend.
Bollinger's post stressed that Bitcoin is trading outside both daily and weekly Bollinger Bands without showing any divergence, which typically suggests a continuation of the current trend.
The last significant pattern noted was a two-bar reversal at the middle Bollinger Band on Nov. 21, reinforcing the strength in Bitcoin's price action.
Inching close to $45,000
Bitcoin has notably surpassed the $44,000 threshold, further cementing its dominance over altcoins such as Ethereum (ETH).
The ETH/BTC ratio has dipped to a new low, a level unseen since June 2022, amid the impressive rally staged by the bellwether cryptocurrency.