Bollinger Bands Inventor: Bitcoin Fully Aligns with Technical Indicators

Since its creation, Bitcoin has attracted an increasing number of traditional market traders and experts into the cryptocurrency field. However, despite this, there are still negative views about the cryptocurrency market, such as its small capitalization, susceptibility to manipulation, and dominance of market trends by positive or negative news. A U.S. financial technician and the inventor of Bollinger Bands believes, "The cryptocurrency market has far less noise compared to traditional financial markets."

Technical analysis indicator Bollinger Bands, BBands was invented by John Bollinger in 1980, and it is widely used in predicting market trends and as a volatility indicator for financial instruments.

During an interview with Forbes on August 21, Bollinger mentioned that he started getting involved in the crypto industry about three years ago, recognizing the opportunity to trade crypto assets, noting that the "noise" in these assets is much less compared to traditional financial markets. He stated:

I actually got into the market very early. Several of my friends were very early miners, and it looked interesting, but I didn't participate. About three years ago, I was watching Bitcoin's price action and found it was very similar to the stock market from the early days.

Especially before arbitrage and program trading entered the stock market, and I think that made Bitcoin an ideal product to trade with technical analysis indicators.

Bitcoin reminds me of the stock market before the introduction of S&P futures

Bollinger believes that the stock market is full of noise, as it has been since the introduction of futures and ETFs. Regarding the future trend of the crypto market, he mentioned:

Bitcoin is seeking support between $9,000 and $10,000, while altcoins may continue to decline.

As reported by ABM previously, there are mixed opinions among analysts in the crypto market about whether altcoins will recover.

Bollinger also validated his thoughts, and the results proved him right, stating:

My Bitcoin theory aligns with the old stock trading patterns; Bitcoin is a critical asset for applying "technical analysis indicators," as are all cryptocurrencies. This is what interests me, and by following the rules of traditional technical analysis, one can perform very well in the crypto market.

Further Reading

• Bitcoin's energy consumption may have reached historic highs
• Research: Global Bitcoin node rankings, China ranks only fifth