Legendary Technical Analyst John Bollinger Predicts Bitcoin to Reclaim $50k
John Bollinger, the developer of one of the most actively used technical indicators, the Bollinger Bands, now says Bitcoin is bottoming up and would reclaim $50k.
Will Bitcoin Reclaim $50k?
Replying to a tweet on June 15, the financial analyst noted that Bitcoin prices are “trying to move higher.”
Bottom in place, prices trying to move higher, first real target is the bottom side of the prior range, call it 48 to 50k. Play it as it lays. $btcusd #Bitcoin
— John Bollinger (@bbands) June 15, 2021
Reading from candlestick arrangements in the daily chart, the first target is the “bottom side of the prior range” at around $48k and $50k.
The Bitcoin price consolidates at spot rates, waving around the $40k level—a psychological point.
Most technical analysts are calling for a comprehensive break above 40k and $42k in the short term.
The latter is an important level marking January high, a point that was also breached once Tesla, back in Q1 2021, said it would invest $1.5 billion in Bitcoin.
The subsequent tear lifted BTC to above $50k, setting the trend for more follow-through before BTC/USD peaked at around $64k—a new record high.
China Effect and Elon Musk Comments
Despite general optimism, Bitcoin prices are in tight ranges with identifiable support at $30k.
Catalyzing recent sell-off has been a spate of FUD mostly stemming from China.
In recent weeks, Chinese authorities, especially in Inner Mongolia and recently Xinjiang, have been cracking down on Bitcoin mining operations, saying they were wasteful, contributing to environmental degradation.
The outflow of miners from these zones subsequently meant the liquidation of their stash, pushing prices lower.
Elon Musk and Tesla also piled on more pressure.
Bitcoin Correcting after Sharp Gains in H1 2021
Nonetheless, some section of traders interpreted the rapid sell-off in May as a normal market correction.
Traced to Q4 2020, Bitcoin prices rallied to over $20k—a psychological level marking 2017 highs—forming a solid base for the subsequent rally to new highs, roughly a year after halving.
Recent fundamental events can trigger a confirmation of the current wave of higher high above $42k.
El Salvador and Paul Tudor Jones Endorse Bitcoin
As BTCManager reported, El Salvador made Bitcoin legal tender.
Meanwhile, Paul Tudor Jones—a billionaire hedge fund manager—notes that Bitcoin is a portfolio diversifier and a means of protecting wealth over time.
Shrewd managers can, in his view, allocate five percent of the fund in BTC.
Earlier, Paul revealed that he owns Bitcoin.
