Bitcoin’s recent rally was simply a ‘head fake’, says John Bollinger

Bitcoin has yet another Black Swan event on Tuesday as its price crashed by $1,500 in just three minutes. The sell-off began at 14:45 UTC when the cryptocurrency was trading at highs above $10,137 and by 14:49 UTC, the price fell to $9,298. At press time, bitcoin is changing hands near $9,500, representing a 6.5% drop on the day. 

Today, the creator of the Bollinger Bands indicator, John Bollinger, has just taken Twitter to warn about Bitcoin’s current price action.

Bollinger believes that it’s time to be ‘cautious or short’ for traders as Bitcoin is trading just below the $9,500 level.

On June 2, Bitcoin erased all of its overnight gains in just a couple of minutes and continued to plunge to as low as $8,600 on the BitMEX exchange.

Just before bitcoin broke $10k, John claimed the BTC Price to See a Massive Rally, and surprisingly, within a couple of days the BTC price hit $10k resistance.

Bitcoin Price Analysis 

At present, Bitcoin price is trading at, $9,520.34 USD with -5.87% loss. The coin is holding the market cap of $175,105,283,865 USD with 18,392,756 BTC circulating supply and $34,639,331,027 USD 24-Hr volume change. 

Bitcoin plummeted to $8,600 and is now back at $9,500. However, it is in a consolidation state now. The hourly timeframe for BTCUSD shows the various barriers BTCUSD is immediately facing. 

The Fibonacci 50% retracement level is at $9549.68. BTCUSD will likely fall back after retracing this level.

The trendlines show temporary resistance levels. The different trendlines still converge below $9,600. In case BTC/USD falls below any of these trendlines, the decline could be very steep. Furthermore, the long term resistance level is at $9,621.63.

BTC/USD has lately remained less traded, Bitcoin has an illiquid market currently. The only time the market became active was when it crossed $10,000 and after the massive drop yesterday.

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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