While the cryptocurrency market has been calm in recent days, famous technical analyst John Bollinger predicts a possible price action in Bitcoin this week.
Bollinger gave an approving response to famous investor Bob Lukas' comment about Bitcoin, "Bitcoin has a big squeeze, it's going to explode this week".
"We're almost in a big jam."
John Bollinger, the inventor of the "Bollinger Bands" indicator, which is frequently used by technical analysts, interprets all investment instruments on his own model.
The Bollinger Bands indicator is a volatility tool that measures sudden changes in the price of any product. The band widens when large movements occur in the financial asset under consideration, and the band narrows when prices start to count. According to John Bollinger's thesis, after the bands narrow, a sudden price movement takes place without a direction.
Latest Status in Bitcoin
Bitcoin, which fell below $ 20 thousand in the banking crisis in the USA, rose to $ 28,000 after the government guaranteed all deposits.
BTC quickly gained momentum as the markets perceived the deposit guarantee as "quantitative expansion".
When we examine the Bollinger Bands indicator, we see a large expansion during the crisis. However, the band has narrowed considerably, as Bitcoin has been inactive for about 20 days. As a result, a sharp breakout is expected either up or down.