Bollinger bands suggest a downside for Bitcoin, but the bull market is still on: Traders

The price of Bitcoin (BTC) could see further losses in the near future without turning off the momentum of the bull market, according to traders using the most widely used momentum indicator.

Bollinger Bands is a technical analysis tool that uses price volatility to indicate potential entry and exit opportunities in trades. Traders basically aim to buy near the lower band and sell near the upper band.

Traders predicted that the increase in daily volatility in the price range indicates that Bitcoin is in a position to move lower.

“The Bollinger Band will lower slowly, the only thing you need is close below the support and you will see an extension to 50Ks,” a crypto trader who identified himself as Aqua told his 16,500 X followers on April 17. post.

In the X series publications on April 17, Stockmoney Lizards predicted a “continuing correction” despite the sharp decline in Bitcoin on April 20. However, they assured that the market maintains a long-term momentum of growth.

“No, the bull market is not over. Just relaxing. Which is fine after such a step of only 1 year,” they wrote.

Meanwhile, technical analyst Tony Severino suggests that the price of Bitcoin could experience significant volatility if the market cycle resembles that of 2017.

“If this cycle is like 2017 then the worst case scenario is $53K based on the Bollinger Band,” he said on April 16. post on X.

On the same day, the pseudonymous crypto trader Rekt Capital announced in post on X that Bitcoin needs to maintain its current support levels “to avoid a breakdown and level the 18% retracement lows of March 2023.”

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Trading Materials Indicators indicated that buy-side support is strengthening at about 5% below Bitcoin’s current price of $64,242.

“Hot charts show support based on bid liquidity rising in the $59k-$61k range with secondary support set to lower to $50k,” it wrote.

If the price of Bitcoin falls to the lower end of that range at $59,000, about $2.2 billion of long positions will be wiped out, per CoinGlass. data.

Additionally, the price of Bitcoin has little wiggle room before large amounts of short positions are liquidated. If the price of Bitcoin rises only 1.15% from its current price to $ 65,000, $ 551 million in short positions will be deleted.

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This article does not contain investment advice or recommendations. Every investment and trading step involves risk, and readers should do their own research when making a decision.