Veteran trader John Bollinger claims that Bitcoin is working on a short-term double bottom in his latest tweet:
The developing risk/reward looks good. Stay tuned for a trade opportunity
On May 18, Bollinger called $43,000 “the logical level” for Bitcoin before the cryptocurrency collapsed all the way to $30,000.
As reported by U.Today, the prominent chartist also spotted a W-bottom in late January. Back then, bulls and bears were battling for the $30,000 level before Elon Musk started toying with Bitcoin tweets and Tesla announced its massive purchase on Feb. 8.
Another brutal sell-off
W patterns are usually formed when the second low is lower than the first one, but the bears haven’t managed to push Bitcoin below the $31,000 level today (so far).
The whole market is in the middle of a brutal sell-off, with Bitcoin plunging by over 16 percent over the past 24 hours.
The largest cryptocurrency is now down 48 percent from its Apr. 14 high.
Vladislav Sopov