Bollinger Bands Inventor: Bitcoin's Recent Trend May See a "Bear Trap"

John Bollinger, the inventor of the widely used Bollinger Bands (BBands) in technical analysis, recently conducted a price analysis on the trend of Bitcoin. He believes that a "bear trap" for Bitcoin may occur in the short term.

On October 17th, the price of Bitcoin once again fluctuated around $8,000, with legendary trader Bollinger pointing out on Twitter the potential for a "bear trap" in the current Bitcoin trend, urging investors to wait patiently. According to a report, analysis from Bollinger on the Bitcoin daily chart shows that with the Bollinger Bands tightening, Bitcoin may be on the verge of making a move. Bollinger believes this could set up a bear trap, but in reality, the trend may break through this year's high. The technical analysis indicator Bollinger Bands, BBands, was invented by John Bollinger in 1980 and is widely used for predicting trends in long-term price movements and as a band indicator for trading. While Bollinger is optimistic about the future trend, top BitMEX trader AngeloBTC's view is more pessimistic. He recently tweeted urging patience for Bitcoin to return to the $6,000 level or for the price to retrace by more than 50% from the yearly high, which he considers a long-term entry point. Despite negative views on the cryptocurrency market such as its small capitalization, susceptibility to manipulation, and market movements being dominated by positive or negative news, Bollinger believes that Bitcoin fully meets the application of technical indicators and emphasizes that "the noise in the crypto market is much less than in traditional financial markets." Bollinger does not believe that the cryptocurrency market is subject to manipulation, stating that "Bitcoin's trend is very similar to stocks before arbitrage and algorithmic trading began in the stock market, and I think this will make Bitcoin an ideal product for trading based on technical analysis." According to the cryptocurrency data platform CoinMarketCap, Bitcoin fell by 1.05% on that day to $8,053, bringing its market value to $144.93 billion. For more information, please visit: - Markets continue to fluctuate, DeFi locked assets reach historic highs - Since the bear market of 2018, the amount of Bitcoin held by major exchanges has continued to reach new highs.