Top Technical Analyst Says Bitcoin Is Forming a “Classic” Top Setup

Price
  • Bitcoin has undergone an extreme rally over the past few days
  • After bottoming in the $16,100 region last week, the coin has rocketed higher to $19,600 as of this article’s writing
  • The coin traded as high as $19,900 earlier today.
  • John Bollinger is warning that Bitcoin could soon find a short to medium-term high.

Bitcoin Could Soon Find a Top, Analyst Says

Bitcoin has undergone an extreme rally over the past few days. After bottoming in the $16,100 region last week, the coin has rocketed higher to $19,600 as of this article’s writing. Earlier today, the coin traded as high as $19,900 in some spot markets and over $20,000 in some of the CME’s futures markets.

Bitcoin is expected to see further gains in the weeks ahead as the coin posts its best monthly candle close ever. BTC is also expected to see a massive yearly candle close should it hold these levels heading into the end of the year.

Some are warning that there may be a correction on the horizon, though.

Legendary technical analyst, John Bollinger, says that a Bitcoin drop or consolidation is likely. Bollinger is known for the Bollinger Bands indicator, which he created. The indicator is now a staple in the toolboxes of many traders.

Bollinger commented on Bitcoin on the morning of Monday, referencing the chart below:

“OK, time to pay attention, $BTCUSD. That is a classic top setup. No confirmation yet and the setup could easily be overrun, but wise traders should wash their glasses.”

Bollinger has long been a fan of Bitcoin. He actively follows the market and has issued eerily accurate predictions in the past, such as calling some intra-week moves in October 2019 and predicting some bouts of price action earlier this year.

Chart of BTC's price action over the past nine months with an analysis by prominent technical analyst John Bollinger
Source: BTCUSD from TradingView.com

Start of a Big Bull Run

Whatever the case, analysts think that the ongoing rally is the start of a longer-term bull trend that will take Bitcoin far above its previous all-time high.

The CIO of Off the Chain Capital recently told Globe and Mail that he thinks Bitcoin moving to $100,000 in this market cycle is not implausible:

“I have seen BTC go up 10X, 20X, 30X in a year. So going up 5X is not a big deal.”

Others have made this strong assertion as well.

Raoul Pal, CEO of Real Vision, recently said that he thinks that Bitcoin could hit $1,000,000 in the next five years as a result of institutional inflows. Pal just announced that 98 percent of his net worth (liquid) is currently in crypto, either Bitcoin or ETH.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Macro Analysis Predicts Bitcoin Has Begun Rally Toward $100k

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