John Bollinger, known for his trading experience, recently commented on Twitter about Bitcoin’s latest performance. In a tweet, he claimed that the ongoing consolidation was “normal market action”, adding that investors should consider support:
“ON NOVEMBER 18, WE REACHED THE CURRENT LEVEL FOR BTC / USD AND WE WERE CONSOLIDATED UP TO THE POINT WHERE THE PRICE OF THE MIDBAND HAPPENED. A NORMAL MARKET MOVEMENT EVER. LET’S LET’S SEE CAN SUPPORT BE KEPT HERE? ”
Bitcoin’s rally pauses
Bitcoin began to experience a sharp correction on December 1, triggered by the failure of an attempt to cross $ 20,000, a key resistance. The leading cryptocurrency has managed to rebound to around $ 18,100 at the time of writing, after dropping to nearly $ 17,600 this morning.
Bollinger, who developed the widely used Bollinger Bands (BB) indicator, claims that the middle band “caught” the price during this consolidation period. In the daily chart below, it is claimed that Bitcoin managed to bounce off the midband, thus preventing a harder drop.
An important level of resistance
On November 30, when Bitcoin broke a new all-time record in three years, the 70-year-old trader warned his followers of a “classic setup”:
“THIS IS A CLASSIC UPPER LEVEL PLAN. NO APPROVAL YET AND THESE LEVELS CAN BE EXCEEDED EASILY, BUT WISER TRADERS SHOULD BE CAREFUL. ”
The $ 19,500 resistance level has proven very difficult to break by the bulls so far. The upcoming Mt. Repayment of Gox funds could potentially put further pressure on the market. The CryptoQuant CEO said:
“DISTRIBUTION OF FUNDS MAY BE DELAYED. BUT I THINK THE MARKET WILL RESPOND IMMEDIATELY DEPENDING ON THE FEATURE OF THE REPAYMENT PLAN IF THEY REACH THE FINAL DELIVERY DATE. “