Bitcoin, the world’s leading cryptocurrency, experienced a significant dip below $38,700 in the wake of the approval of spot Bitcoin ETFs in the US. Concerns about a potential “sell-the-news” event had loomed large, leading to a sell-off initiated by digital asset fund manager Grayscale.
However, recent developments suggest that Bitcoin may have weathered the storm, with its price now rebounding above $42,600.
John Bollinger’s optimistic outlook on Bitcoin
John Bollinger, the renowned creator of the widely-used Bollinger Bands technical analysis tool, has expressed optimism regarding Bitcoin’s recent price action. Bollinger, a figure highly respected in the trading and financial industry, took to social media to convey his bullish stance on Bitcoin.
He suggested that the cryptocurrency might have concluded its downward trend and that a potential recovery could be on the horizon.
Bollinger Bands, known for their effectiveness in assessing volatility and potential price reversals, have become a crucial tool for traders. Bollinger’s endorsement of Bitcoin carries significance, given his track record in the field of technical analysis.
While Bollinger did not provide extensive details regarding the basis for his prediction, his reputation lends credibility to his statements. This is not the first time he has expressed bullish sentiment towards Bitcoin.
Earlier this month, he shared a price chart on social media indicating his belief that Bitcoin was poised for an upward move. At that time, Bitcoin was trading at $44,130, and the approval of spot ETF applications had not yet materialized.
Current Bitcoin status
As of the latest data available, Bitcoin is trading at $42,499, marking a 2% increase in value over the past 24 hours. If Bollinger’s assessment holds, suggesting that Bitcoin has found a bottom, it could indicate that the worst of the recent correction is behind us, and the cryptocurrency is on a path toward recovery.
