John Bollinger warns of potential pullback amid rising Bitcoin price

Veteran trader John Bollinger, creator of Bollinger Bands, expressed caution about Bitcoin’s immediate future.

Bitcoin is up almost 13% in the last week and a half, reaching the US$71,000 mark for BTC. This recovery has led market analysts and traders to reevaluate your strategies as Bitcoin approaches its all-time high of $74,000.

Amid the bullish sentiment, Bollinger identified a worrying pattern on the Bitcoin price chart, suggesting a potential period of pullback or consolidation. He highlighted the appearance of a two-bar reversal at the top of the Bollinger Band, which often indicates a temporary market correction.

Bollinger Bands are a popular tool among traders, helping to identify volatility and potential price reversals by plotting standard deviations above and below a simple moving average.

Although John Bollinger’s analysis suggests near-term concerns, the trader remains optimistic about Bitcoin’s long-term prospects, a stance based on technical indicators rather than a fundamentally pessimistic outlook.

Bollinger’s outlook reflects current market sentiment, where optimism about Bitcoin’s future growth is balanced by an awareness of potential short-term volatility.

Meanwhile, Willy Woo, crypto analyst and co-founder of venture capital firm CMCC, highlighted a different aspect of Bitcoin’s market behavior.

On May 22 publish on X, Woo noted that although the price of Bitcoin had not risen significantly over the past two months, available BTC was being accumulated silently without an increase in paper BTC.

Woo believes it is only a matter of time before Bitcoin surpasses its all-time highs.

On the same day, the Bitcoin Fear and Greed Index was at 76. The 75-100 level shows an extreme level of greed and means that traders in the market are in the mood to buy more.

When the market rises, people tend to accumulate more cryptocurrencies, which means they become greedier, a phenomenon that leads to higher price movements.

The recent price movement and analyst sentiment come at a crucial time for Bitcoin, which is trading just 6% below its peak price. The market is watching closely to see if Bitcoin can surpass its previous high, a milestone that looks increasingly likely given its current trajectory.

At the time of writing, the world’s largest crypto asset was trading at $69,973, marking a 1.5% drop in the last 24 hours, according to data from CoinMarketCap.

24-hour BTC price chart | Source: CoinMarketCap

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