Bitcoin went slightly above $55k earlier and has remained above all key support levels ever since its rise above $52k. Soon after the digital currency parked between $52k-$55k, several analysts pointed to a small price correction that would have put bulls and bears directly in path against each other. The creator of the Bollinger Band trading theory also directly predicted such a scenario. However, for now, the bulls are reportedly holding the valuation.
Bitcoin Holding on to Price Increase
Bitcoin rose abruptly above $50k to go as high as $56k at the start of this week. But, now it isn’t charging forwards but rather cementing its progress anywhere between $53k-$56k trading range. We have remained within this narrow range for the last 3-4 days and that is interesting because many analysts suggested a short-term pullback was on the cards. They believed that overtaking the $1 trillion valuation was much big of a matter and it could prove to be a crucial lifeline for the bears who were taking a beating.
Perhaps the most notable of these short-term bears was John Bollinger himself. He even indicated that traders should start looking for an exit strategy from now on. The creator of the popular Bollinger Band theory tweeted:
Second target achieved, $BTCUSD. UpperBB expanding with the rally. Keep a trailing stop like BBstop or a Chandelier going. All clear for now, but starting looking for signs of a top / exit. I am off for a couple of weeks of travel. Good trading! #Bitcoin
— John Bollinger (@bbands) October 5, 2021
Can the Short-term Bears Strike Back?
The bullish sentiment and the stability of the index above $53k has poured cold water on these short-term bears. However, as Monday approaches there is a chance for a small price pullback. The technical indicators that also pointed to a price retracing are also changing. The Greed Index and the Funding rate for Bitcoin Futures has changed with the latter coming back to neutral levels. So, while both are still far from bullish, they are still flipping and may upgrade to a fully bullish status in the coming weeks if not days.
Overall, there are plenty of bullish indicators at play in the market right now as well. The amount of Bitcoin being held by exchanges around the world has diminished and long-term wallets have accumulated more and more. This has resulted in a supply shock that is seeing Bitcoin being sold at premiums especially in areas with weak local currencies.