In summary:
- John Bollinger has warned that Bitcoin needs to keep moving up or risk printing a head-fake.
- Bitcoin is having a hard time breaking and holding the important $9,600 price level.
- However, recent news developments from Visa, Mastercard, Paypal and the OCC, might provide fuel for a continual push-up.
The inventor of the popular charting indicator of Bollinger Bands, John Bollinger, has warned that Bitcoin (BTC) needs to maintain its upward momentum or risk printing a head-fake. Mr. Bollinger made the comments via the following Tweet and around the same time, Bitcoin (BTC) broke the crucial $9,300 resistance zone.
OK, there is the first lift in the BB Squeeze. Now we need to see follow through or we'll be setup for real trouble, a Head Fake. $BTCUSD
— John Bollinger (@bbands) July 21, 2020
More on the Head Fake and a Brief T.A of Bitcoin
A head fake is defined as when an asset such as Bitcoin, implies that it is moving in one direction only to reverse course and more often, in a violent manner. In the case of BTC, the King of Crypto needs to push on higher and break several resistance zones such as $9,600 and $9,800 or risk falling back to familiar levels around $9,100 or even $8,900.
A quick glance at the 6-hour Bitcoin chart courtesy of Tradingview reveals that all moving averages point towards a bullish scenario for BTC. However, trade volume is reducing as is the norm during the weekend. Furthermore, the MACD and MFI point towards a bearish scenario for Bitcoin for the next few days.
Effects of Bullish News from VISA, Mastercard, PayPal and the OCC
However, the mentioned bearishness might not cause a head fake that could lead to Bitcoin falling hard. In the last two weeks or so, there has been tremendous bullish news in terms of traditional financial service providers opening their doors to supporting Bitcoin and other cryptocurrencies.
To begin with, and after cracking the whip on crypto in 2018, VISA changed its attitude towards digital assets. The company stated that they want to support the role crypto will play in the future of money. Secondly, the payment processor of Mastercard also pledged to aid crypto adoption and led the path by first granting Wirex a Mastercard principal membership which allows it to directly issue payment cards.
Thirdly, Paypal has announced its plan to venture knee-deep into crypto trading by offering the service to its clients in the near future. Fourthly, the US OCC announced that US banks can now offer custody solutions to their customers.
Therefore, and in a brief conclusion, Bitcoin’s current price at $9,500 levels might not last long given the bullish news mentioned above. For investors playing the long game, buying Bitcoin below $10,000 is still a bargain given the potential future ahead.