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Trading Legend John Bollinger Suggests Recent Bitcoin Price Drop Could Be a Bear Trap: "Wait for It"

  • Alex Dovbnya
    📰 News

    Bitcoin bulls could incur significant losses if Bollinger's "head-fake" prediction is spot-on

Trading Legend John Bollinger Suggests Recent Bitcoin Price Drop Could Be a Bear Trap: "Wait for It"
Cover image via twitter.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

On Oct. 17, the Bitcoin (BTC) price has once again dipped below $8,000. However, it might be too early for the bears to start "I-to-you-soing".

Trading legend John Bollinger, the inventor of the widely used Bollinger Bands indicator, says that there is currently a good potential for a head-fake. 

A head-fake is a term that came from basketball, but it later ingrained itself in different areas of life (including trading). Such a trade happens when the price of a certain asset suddenly makes a huge move in the opposite direction.  

"The head-fake trade occurs most frequently at key breakout points, such as major support or resistance levels, or closely watched moving averages like the 50-day or 200-day simple moving average (SMA)," Investopedia says

Bitcoin has been stuck in a sideways trading range for about three weeks with a couple of notable moves. 

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BitMEX Data Shows BTC Price Could Soon Experience Major Volatile Move as Market Sentiment Turns Bearish

With the Bollinger Bands, a popular trading indicator that gauges the volatility of a certain asset, getting unsettlingly tight on a daily scale, traders cannot help but expect another significant price move that will define the future of billions of dollars. 

Twitter regular Josh Rager noted that the BBs "started to pinch" on Oct. 13, which means that traders will probably see some fireworks in the short-term. 

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However, while the bears complacently expect the ball to in their court, they might find themselves in one of the biggest traps of 2019. 

As reported by U.Today, Bitcoin's volatility sunk to its four-month low on the cusp of its 20 percent drop to the $8,000 level. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an 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.

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Bitcoin's Parabolic Uptrend Remains Intact Despite Price Collapse: Tuur Demeester

  • Alex Dovbnya
    📰 News

    Tuur Demeester wants you to buy the dip as Bitcoin touches the support of its parabolic uptrend for the first time since March

Bitcoin's Parabolic Uptrend Remains Intact Despite Price Collapse: Tuur Demeester
Cover image via u.today

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Tuur Demeester of Adamant Capital has just taken to Twitter to calm down Bitcoin enthusiasts who might have been swayed by incredibly bearish sentiment on crypto Twitter. 

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Bitcoin recently dropped to $6,800, its lowest level since early May. However, Demeester apparently sees this as yet another opportunity to buy the dip. He states that top coin's parabolic uptrend that started at the beginning of 2015 hasn't been violated. However, Bitcoin has tapped support for the first time since March when Bitcoin was trading well below $4,000. 

Shortly after printing a huge red candle on the logarithmic chart, the Bitcoin price spiked by 20 percent on Apr. 2, which started the coin's massive run to $13,700. 

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As of now, BTC is down by nearly 50 percent from its yearly high, but this might not be the end of the nightmare for Bitcoin bulls. According to trading exert Josh Rager, the crypto king could plunge below the $7,000 level again after a fakeout to the $7,500 range. 

Gold bug Peter Schiff recently predicted that BTC could collapse to $10,000 level after competing the head-and-shoulders pattern.  

At the time of writing, BTC is sitting $7,313, CoinStats data shows. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an 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.

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