Bitcoin has lost 35 percent since its all-time high of $ 64,500, but its current price actually makes sense.
At least, according to veteran analyst John Bollinger, the developer of the Bollinger Bands indicator.
Bollinger: The current price action “says a lot”
Bollinger, one of the Bitcoin (BTC) analysis sources, tweeted on May 18, calling for a calm after new price fluctuations. was found.
“The logical level of about $ 43,000 for the BTC / USD pair. It is possible to define this with the peak in January and the bottom in March,”
“Price action at logical levels warns the smart trader or analyst to act cautiously.”
Bollinger cited $ 42,000, Bitcoin’s previous all-time high. This is also notable as the level it jumped during another retracement in early March.
As Cointelegraph reported on May 18, the indicator’s focal point works as a natural support line. It reveals an average of 35 percent correction from Bitcoin’s highest level in history.
Even those who expect a deeper correction note the $ 42,000 level. Among them is CNBC analyst Carter Worth, who plotted a pessimistic $ 29,000 scenario for the BTC / USD pair.
There is no bear here
The Bollinger Bands indicator is currently continuing to track the BTC / USD parity precisely. The narrowing and widening bands successfully reflected the up and down parts of price volatility, including the movements of last week. Bands are fixed around the 20-day simple moving average (SMA) using a single standard deviation.