John Bollinger, renowned technical analyst and creator of Bollinger Bands, weighed in on Bitcoin’s recent all-time high, noting that the milestone eliminates a potential bearish signal on the cryptocurrency’s chart. The record price invalidates a possible negative Bollinger Band divergence, a technical pattern that can sometimes foreshadow a price reversal.
Bollinger acknowledged the recent period of consolidation in Bitcoin’s price, describing it as a normal occurrence within an uptrend. While some might interpret consolidation as a sign of weakness, Bollinger suggests it’s a natural part of a healthy bull market.
However, the analyst also expressed concern about the lack of participation from Ethereum, the second-largest cryptocurrency, in the recent bullish wave. While Bitcoin has surged to new heights, Ethereum’s price has remained relatively stagnant. Bollinger described this divergence as a “warning sign,” stating he would be more confident in the overall market strength if major altcoins, including Ethereum, were also experiencing significant price appreciation.
Several factors are believed to have contributed to Bitcoin’s recent price surge, including the U.S. presidential election results, with some speculating that a cryptocurrency-friendly stance from the incoming administration could be beneficial for the market. Rumors of Elon Musk’s potential involvement in the administration and speculation about the approval of Bitcoin spot ETFs have also fueled the bullish sentiment. Over the past week, Bitcoin’s price has gained approximately 6%.
