Trading legend John Bollinger says the next target for the price of bitcoin could be somewhere between $48,000 and $50,000.
Bottom in place, prices trying to move higher, first real target is the bottom side of the prior range, call it 48 to 50k. Play it as it lays. $btcusd #Bitcoin
— John Bollinger (@bbands) June 15, 2021
He wrote this on his official Twitter profile, saying that a bottom may have formed in recent weeks, and that prices are looking to start climbing again.
According to his analysis, at this point, the target of this possible rise would be a range between $48,000 and $50,000.
He did not specify the timing of this hypothesis, but it is likely that he was referring to the short term, i.e. the trend of these days.
Who is John Bollinger and what does he think about Bitcoin?
John Bollinger is a financial analyst famous for inventing the famous “Bollinger bands”, a technical tool for measuring and monitoring the price volatility of a financial asset.
Bollinger is also known for overlapping technical and fundamental analysis, so much so that in order to bridge the gap between these two approaches he advocates another approach called “rational analysis”, defined precisely as “juncture of the overlap between technical and fundamental analysis”.
It is well known that technical analysis is often problematic when applied to cryptocurrencies, for which fundamental analysis is generally preferred. But technical analysis aims to give faster and more precise indications, especially on short-term trends, so it is also commonly applied to crypto markets.
Bollinger’s approach could allow for more valuable analysis in crypto precisely because he uses fundamental and technical analysis simultaneously.
Furthermore, Bollinger is not the only analyst to argue that a new bottom may have formed in May for the bitcoin price in the $30,000 to $31,000 area. If that is the case, the current climb to $40,000 could prove to be solid.
There are also a number of fundamental analysis indicators which would suggest that the bearish trend of previous weeks may have reversed this week, as flows of so-called “hodlers” have turned positive for the first time since October 2020.
HODLer Net Position Change has flipped green for the first time since October. pic.twitter.com/0hhjXrSdmF
— Will (@WClementeIII) June 15, 2021
When these flows are negative it means that even long term holders of bitcoin are probably selling, while when they are positive it means that they are probably accumulating instead.
