Bollinger Bands Inventor: $14,000 is Key Resistance for Bitcoin, U.S. Election Won't Cause Market Decline

The inventor of the Bollinger Bands stated in a media interview this week that $14,000 is a strong psychological resistance level for Bitcoin's price increase. In addition, the U.S. election is not expected to cause a market downturn as many believe.

$14,000 is a key psychological resistance

On October 27, 2020, John Bollinger, the inventor of Bollinger Bands, told Forbes:

"The key for Bitcoin to continue its upward trend is whether it can break through and hold the key level of $14,000. At this stage, this range has a very strong psychological resistance because it is the point where the rebound ended in June 2019."

Forbes noted that John Bollinger made this comment the day before Bitcoin rose to a recent high of $13,860, indicating that the $14,000 resistance is indeed significant.

Furthermore, John Bollinger emphasized that he is not a Bitcoin enthusiast nor a critic; he simply predicts price trends based on historical data.

In fact, this is not the first time John Bollinger has analyzed Bitcoin price trends. According to previous reports, in July of this year, when Bitcoin was trading in a narrow range around $9,500, John Bollinger expressed caution about the Bitcoin price and advised investors to be cautious about future trends.

So we've seen the consequences of follow through out of a BB Squeeze, time for the h8trs to try bashing $BTCUSD

— John Bollinger (@bbands) July 27, 2020

However, Bitcoin surged to $12,486 after John Bollinger's tweet.

Will the U.S. election cause major volatility?

The U.S. presidential election is scheduled for November 3, 2020. Analysts generally believe that there will be significant market volatility globally on that day, and the election results will also have a major impact on the global economy and traditional investment markets. Interestingly, John Bollinger believes that the U.S. election will not affect the price of Bitcoin. He stated:

"The U.S. election will not affect Bitcoin. For Bitcoin, what really matters is the adoption by large corporations or institutions."

However, the recent price of Bitcoin has been closely mirroring the traditional financial markets, declining along with weak U.S. stocks. As the Shanghai Composite Index fell at noon today, the cryptocurrency market followed suit. What if global stock markets decline during the election? John Bollinger commented:

"I don't think this scenario will happen in the traditional financial markets. The election itself is a disappointing event. This means that we put so much energy and emotion into the election that no matter what the outcome, there will be disappointment. I believe that during the election cycle, the trend in traditional markets will remain stable or even rise."