Bitcoin

Bitcoin Indicator Behavior Mimics Historic Rally

Bitcoin price keeps sinking, but has kept mostly sideways leaving bears unable to break support to new lows. With the trading range at a pivotal point, as one trading legend often says it is “time to pay attention.”
The reason for the focus, is because what started as a fractal in price action, is now causing similar behavior in the Bollinger Bands that led to one of the most powerful pumps in Bitcoin history. Is that what’s next with bearish sentiment at such critical heights currently?
Pause In Downtrend Leaves Traders Confused, Market In Fear
Markets are cyclical and oftentimes sentiment lags behind price action. The recent uptrend in cryptocurrencies came to a pause when things were at their best – just as Coinbase Global went public, and prices were at all-time highs.
Related Reading | Market Timing: Why Bitcoin Could Sweep Lows Before A Bounce
It wasn’t until more than 50% from the price per BTC was shed before investors started to become bearish on Bitcoin. Over the last several weeks since the big drop in May, a symmetrical triangle has been forming but it might not play out the way text book technical analysis would suggest.

The Bollinger Bands closely match the “China pump” from 2019 | Source: BTCUSD on TradingView.com
Sentiment is at extreme fear and a technical indicator that can be used to forecasts bounces, the Bollinger Bands, looks a lot like the last time the market reached a pause in a new downtrend like this.
At that time, the creator of the tool, John Bollinger, warned it was now “time to pay attention” as trickery could soon reveal, and reveal it did.
Bitcoin “Squeeze” Could Lead To Epic Pump
With sentiment at the very worst and a sweep of lows now checked off the list, Bitcoin price could pump back higher to either retest or reclaim previous highs.
Price action has repeatedly wicked into the lower Bollinger Band without a big break, suggesting that this latest test of the lower band is a bear trap setup called the “Gimmee Bar” discovered by Joe Ross.

Several wicks into the lower BB suggest a bear trap | Source: BTCUSD on TradingView.com
In 2019, the top cryptocurrency couldn’t recover the lost level, but the bull market is a lot different this time around. Holding the level here would result in the first major bull market correction of the rally continues from here.
Related Reading | Bitcoin Bulls And Bears Alike Beware Of Potential Pump And Dump Fractal
If the level cannot be reclaimed, much like the China pump of late 2019 failed and led to new lows, so too will any unfinished recovery from here. Regardless of what happens, it is worth paying extra close attention the next several days until Bitcoin price choses a new direction.
Featured image from iStockPhoto, Charts from TradingView.com

bitcoin
Bitcoin (BTC) $ 66,232.75
ethereum
Ethereum (ETH) $ 3,563.12
tether
Tether (USDT) $ 0.999595
bnb
BNB (BNB) $ 607.61
solana
Solana (SOL) $ 145.27
staked-ether
Lido Staked Ether (STETH) $ 3,561.64
usd-coin
USDC (USDC) $ 1.00
xrp
XRP (XRP) $ 0.489643
dogecoin
Dogecoin (DOGE) $ 0.136551
the-open-network
Toncoin (TON) $ 7.91
cardano
Cardano (ADA) $ 0.413916
shiba-inu
Shiba Inu (SHIB) $ 0.000021
avalanche-2
Avalanche (AVAX) $ 30.16
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 66,231.75
tron
TRON (TRX) $ 0.115289
chainlink
Chainlink (LINK) $ 14.80
uniswap
Uniswap (UNI) $ 11.46
polkadot
Polkadot (DOT) $ 6.22
bitcoin-cash
Bitcoin Cash (BCH) $ 428.75
near
NEAR Protocol (NEAR) $ 5.58
litecoin
Litecoin (LTC) $ 79.10
matic-network
Polygon (MATIC) $ 0.616895
wrapped-eeth
Wrapped eETH (WEETH) $ 3,704.58
leo-token
LEO Token (LEO) $ 5.76
dai
Dai (DAI) $ 1.00
pepe
Pepe (PEPE) $ 0.000012
internet-computer
Internet Computer (ICP) $ 9.13
ethereum-classic
Ethereum Classic (ETC) $ 25.55
fetch-ai
Fetch.ai (FET) $ 1.46
kaspa
Kaspa (KAS) $ 0.153212
aptos
Aptos (APT) $ 7.90
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,556.99
ethena-usde
Ethena USDe (USDE) $ 1.00
monero
Monero (XMR) $ 175.62
render-token
Render (RNDR) $ 7.91
hedera-hashgraph
Hedera (HBAR) $ 0.084830
filecoin
Filecoin (FIL) $ 5.21
mantle
Mantle (MNT) $ 0.895835
blockstack
Stacks (STX) $ 1.97
stellar
Stellar (XLM) $ 0.098469
cosmos
Cosmos Hub (ATOM) $ 7.13
okb
OKB (OKB) $ 46.22
crypto-com-chain
Cronos (CRO) $ 0.099994
arbitrum
Arbitrum (ARB) $ 0.919987
immutable-x
Immutable (IMX) $ 1.74
first-digital-usd
First Digital USD (FDUSD) $ 0.999494
injective-protocol
Injective (INJ) $ 25.36
dogwifcoin
dogwifhat (WIF) $ 2.41
sui
Sui (SUI) $ 0.939418
optimism
Optimism (OP) $ 2.10