Legendary Technical Analyst John Bolinger
Technical analyst John Bolinger says that the price of Bitcoin is trying to move up. He pointed out that the first real target is the bottom side of the prior. This means the $48k to $50k range.
This was in response to a tweet from BigCheds on Twitter which posted a candlestick chart showing Bitcoin’s progression.
The account tagged John in a follow-up tweet and the later replied that bitcoin was going up to the $50k range.
At the end of the tweet, he says to “play it as it lays.”
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John Bolinger created Bolinger Bands. A technical indicator that is used widely across industry. The tool uses a set of trend lines plotted two standard deviations, positively and negatively, away from a simple moving average (SMA) of a security’s price. While the tool works great with its standard settings, it can also be calibrated to a user’s preferences.
“Bottom in place, prices trying to move higher, first real target is the bottom side of the prior range, call it 48 to 50k.”
– Tweet from John Bolinger from his Twitter account @bbands.
Calling the price of Bitcoin is never an exact science. Forecasts are mostly just opinions and educated guesses made by analysts. They do this through analyzing past prices and movements of an asset over a period of time to try to gauge where the asset will go next.
When a reply to the tweet said that they were having a hard time being bullish on Bitcoin when it still hasn’t broken the $43k range, John Bolinger replied, “The market will let us know what to do, the rest is just opinion.”
Bitcoin Price Crash
The price of Bitcoin crashed in response to the Chinese government cracking down on crypto mining in the country. With mining facilities being closed down in Xinjiang, Inner Mongolia, and Qinghai provinces.
Bitcoin price surged after the Tesla announcement in February | Source: BTCUSD on TradingView.com
Bitcoin seems to be on a path to correction since then but not without some bumps along the way.
Elon Musk Tesla Comments
Elon Musk had announced that Tesla would stop accepting payment in Bitcoin for cars in May due to environmental concerns related to mining.
As expected, market reaction to this announcement was not favorable as the coin took a downturn. There was a prompt sell-off of coins in reaction to this news, dragging the price down, although not by a large margin.
Tesla’s announcement that they were accepting Bitcoin for cars back in February gave the market a huge boost. Pushing the coin into the $40k range. An uptrend that would continue until Bitcoin hit its all time high.
So it’s no surprise that the announcement that they will not be accepting Bitcoin payments had the opposite effect on the coin.
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The electric automotive manufacturer has stated that they will resume Bitcoin payments when mining operations transition to more sustainable energy.
Bitcoin Adoption Could Help Get It Back To $50k
Last week, the crypto space was abuzz with the news of El Salvador accepting Bitcoin as a legal tender. The country recorded an exponential increase in the amount of Bitcoin remittances from citizens overseas sending money back home to loved ones.
Following this, other South American countries like the Bahamas has said that they are considering making Bitcoin a legal tender.
Tanzania’s president has also called for the central bank to start developments for crypto adoption.
Faith in the market is going back up as institutional investors are continuing to buy Bitcoin.
A culmination of these events has led to a price increase but not much as the coin is still struggling to break $41k.
Featured image from Blockchain News, chart from TradingView.com