As detailed extensively by Ethereum World News, the crypto market has been struggling over recent weeks. Bitcoin remains locked in the high-$9,000s and low-$10,000s range, while market “chop” has absolutely decimated altcoins, resulting in a Bitcoin dominance reading of nearly 70%.
But, one prominent technical analysis, one whose technical indicator has become a staple for many of crypto’s investors, is calling for a short-term bottom. Speaking to Forbes contributor Benjamin Prius, Bollinger Band creator John Bollinger, who purportedly forayed into cryptocurrency some three years ago, explained that he is under the belief that Bitcoin and its ilk are “working on trying to forge a short-term tradable bottom”, which he adds may have “intermediate-term implications”. What is seemingly implying is that this may be the base for Bitcoin’s next leg to the upside, one that some optimistic analysts claim will bring BTC past $20,000.
Bollinger stated that while the bottoming “process is [not] completed yet,” he is currently eyeing a range of “some place between $10,000 and $9,000” for BTC to find a low. He did point out, however, that for Bitcoin to show some strength, altcoins may need to turn with it.
His call for a bottom lines up with an analysis from Bloomberg released earlier this week. Per previous reports from this outlet, Bitcoin “appears to be gaining momentum for a push higher”, citing the fact that BTC had recently dropped “below the lower limit of its GTI Vera Band Indicator, which measures up and down trends”. This implies that the asset is oversold. Indeed, the last four times the bottom band was breached, “it managed to quickly rally back into the range”.
And according to Mike McGlone, an analyst at Bloomberg Intelligence, Bitcoin is currently setting itself up for a recovery. He explained in a note that its “unique attributes” (likely a reference to its classification as a digital store of value/digital version of gold) and tumult on the macroeconomic stage could help boost the value of Bitcoin. Indeed, many say that if trade wars continue to rage and if central banks continue to enlist unorthodox monetary policy, the need for a form of money that is decentralized, scarce, borderless, and public will only swell.
Altcoins Aren’t Done Bleeding Yet
Bollinger did point out that he believes that altcoins are still in the midst of “making new lows”, implying that he sees further pain in this segment of the asset class. He didn’t call for the “death of altcoins” like some other traditional traders involved in cryptocurrencies, but his tone on altcoins in comparison to Bitcoin was evidently a tad more bearish.