John Bollinger, the esteemed market analyst and the innovator behind the Bollinger Bands, has once again turned his focus to Bitcoin, hinting at a potential upward price movement in his recent X post.
He highlighted a two-bar reversal for Bitcoin at the lower Bollinger Band on Sept. 11/12 as the controlling technical factor, suggesting a possible surge if more strength is seen.
Anticipating Bitcoin rally
As reported by U.Today, Bollinger recently spotted a potential "upper band" breakout and indicated a possible bullish trend for the cryptocurrency.
Bollinger Bands comprise a middle band representing a simple moving average, and upper and lower bands signifying standard deviation levels from the middle band. These bands serve as a gauge to measure. Traders use these bands to identify potential price spikes and reversals in volatile markets.
Bitcoin price spike comes with caution
Bitcoin's price has recently experienced a 2.4% increase, currently valued at $27,000, with its market capitalization surpassing $530 billion.
Data analytics firm Santiment revealed a bright long-term outlook for Bitcoin, noting whale accumulations of Bitcoin and USDT. However, the firm also cautioned about possible short-term corrections due to heavy profit-taking by traders at the $27,000 mark.
Santiment advised monitoring the 7D MVRV (7-day market value to realized value): when it gets below 0, it may be ideal for another upward move.