Bitcoin price irrespective of any market sentiments, on-chain metrics, or technicals, continues to trade within a compressed zone for over a week now. While the traders are pretty much worried about the upcoming trend, one of the top analysts recently substantiate the bearish claim.
Hence, it is very important to closely watch the price actions in the next 24-48 hours, as a bull trap may be laid down.
After the recent jump, the BTC price surged above $25,000, sowing the hopes of a rally towards $30,000, slicing through the resistance at $28,000. The recent dump flipped the entire scenario, but still, some hoped for the bullish days ahead.
However, one of the top analysts and the inventor of Bollinger Band, John Bollinger through his post warned his 225.3K followers to be cautious with BTC trade.
The analyst believes a change in trading dynamics is on the toes while the community may witness an ‘unusual resolution’ of the BB squeeze. He further clarifies by saying that a normal BB squeeze induces huge volatility that results in a significant leg up or down. However, the structure remains extended within a tight range for nearly 5 days, which may be hazardous.
When asked, whether it is a good sign or not, the analyst just replied to be very careful as there will be a lot of change in trading dynamics across a host of vehicles.
It is worth noting that crypto markets have not stood to expectation since the beginning of 2022. While the markets have experienced bear markets previously, the current markets quiet different from before.
As the markets now are facing macroeconomic inflation & recession concerns. Therefore, applying any metrics of the previous cycles to the current ones may be extremely dangerous at the moment.
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