Bitcoin Shows Signs of Trend Exhaustion: Bollinger Bands Signal Potential Reversal
Key points:
- BTC price action has rejected from the upper Bollinger Band several times since April.
- The creator of the metric sees the potential for the local uptrend to end.
- Bulls face multiple headwinds, including geopolitical tensions and heavy selling interest.
Analysts suggest persistent rejection near major resistance levels marks a potential turning point.
Bollinger Bands Rejection Points to Trouble
John Bollinger, creator of the widely used volatility indicator, has declared an end to Bitcoin’s comeback from April’s near-$75,000 lows.
In Friday’s X posts, Bollinger analyzed BTC’s performance over recent months, delineating the recovery into five defined segments, each capped significantly.
“Three Pushes now confirmed,” Bollinger wrote, noting that these optimistic advances ultimately reversed despite occasional brief excursions above $110,000.
The analysis concludes that the pattern of rejection “means the end of the prior trend,” potentially ushering in consolidation or reversal.
Bollinger Bands, including the indicator’s upper band, remain crucial metrics for tracking volatility and identifying potential pivot points in the primary bear market bounce.
Bull Run Faces Multiple Hurdles
According to ongoing reports, Bitcoin confronts significant obstacles despite recent May gains.
Resistance near the all-time high could extend towards $120,000, where substantial sell orders are expected.
“Markets are stuck in a bind, bracing for either further escalation or a sudden pivot toward de-escalation through diplomatic channels.”
Despite geopolitical complexities and trade disputes adding uncertainty, Bitcoin has shown institutional resilience, suggesting persistent demand.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
