Will Bitcoin (BTC) Price See New Bottom? John Bollinger Weighs In

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Fri, 03/27/2020 - 17:30
Alex Dovbnya
John Bollinger says that all correlations tend toward zero in a crisis, which is why another stock market collapse could be detrimental to Bitcoin (BTC)
Cover image via twitter.com
Contents

John Bollinger, the creator of the Bollinger Bands (BBs) indicator, has shared his take on Bitcoin's price performance for the first time since the historic March 12 crash. In the thread about BTC potentially reaching a new bottom, the trading guru opined that all correlations tend toward one during crises. 

If the U.S. stock market starts reeling from the rapidly growing number of domestic coronavirus cases, BTC could print another huge red candle.  

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The bulls are not safe

According to trader @QuodSemper, the bottoming process usually takes longer during financial crises. This is why he expects Bitcoin to resume its downtrend. Moreover, he has spotted a rising wedge with the declining volume on the daily chart, which is typically regarded as a bearish signal. 

After more than a week of topsy-turvy price action, Bitcoin has been see-sawing around the $6,600 level for four days in a row. Such periods of low volatility are usually followed by another storm. 

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Bollinger didn't see that coming

As reported by U.Today, Bollinger tweeted that he didn't think that Bitcoin would fall victim to the COVID-19 panic. He expected it to act as a safe-haven asset during such a black swan event. 

Bollinger's disappointment as a tell-tale sign. The BTC price witnessed one of its biggest drops in history (that also coincided with the fastest stock market crash ever) just two days after his tweet.  

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with 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, can be contacted at alex.dovbnya@u.today.

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