Bollinger bands suggest downside for Bitcoin, but bull market remains: Traders – TradingView News

Bitcoin price BTCUSD could see more losses in the near future without shutting down the momentum of the bull market, according to traders who use a 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 good position to move lower.

“The Bollinger band will narrow if it is released slowly, the only thing you need is close below the support and you will see an extension to 50Ks,” anonymous crypto trader Aqua told their 16,500 X followers in an April 17 post.

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

“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 in an April 16 post on X.

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

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 liquidated, according to 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.

Magazine: Bitcoin Halving Will Push Games, Shrapnel’s ‘Simple’ Secret Revealed: Web3 Gamer

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.