Trading Guru Says Bitcoin (BTC) Highly Likely to Recover as the Crypto Market Cap is up $5 billion


Bitcoin BTC Trading

John Bollinger, a Technical Analysis guru and the creator of Bollinger Bands, a widely used indicator, is confident that yesterday’s massive liquidation in the stock and the crypto markets may end up marking an important low.

Taking to Twitter, the revered analyst added that the market should better mark yesterday’s low and prepare for a wave of higher high amid a sell off triggered primarily by retail traders exiting their positions in fear.

“The evidence thus far suggests that this is a classic panic selling day and the possibility of it being an important low must be considered.”

Trading Community not Convinced

Overly, the trading community is not convinced. The situation is even exacerbated by the volatile nature of the crypto market.

Marked by relatively low liquidity compared to traditional markets as bullion or the stock markets, Bitcoin—being the leader is synonymous with wild price swings.

However, in later years—thanks primarily to the entry of institutions and regulators as the US CFTC approving different firms to launch derivatives products as Futures, Bitcoin and the crypto market has benefited from deep money.

This influx of capital has seen Bitcoin volatility drop to single digit figures. Should the US SEC approve any of the nine Bitcoin ETF proposals, the market will be steadier and swings as those witnessed yesterday and last week will be few unless otherwise a macro-event force a shift of capital.

Bitcoin Technical Indicators are bearish; Bollinger Bands Hint of Strong Bear momentum.

At the time of going to press, yesterday’s panic has turned into confidence and the crypto market is up $5 billion in the last trading day.

Crypto and Bitcoin Market Cap
Crypto and Bitcoin Market Cap

Yesterday’s Bitcoin bar was bullish. Still, prices are ranging inside last week’s price action. Technically, unless there is a sharp mark up above $9,000 and preferably $9,500 as bulls reverse last week’s losses, sellers are in control.

Bitcoin BTC Daily Chart for Mar 10
Bitcoin BTC Daily Chart for Mar 10

Meanwhile, BB points to bears—as it is a lagging indicator. Price action, despite bear indications, points to a temporary support. Visible from the daily chart, prices are lagging along the lower BB, hinting of strong bear momentum.

Feature Image Courtesy of Pixabay