Bitcoin Rally Failed: Bollinger Says the Charts Saw It Coming
According to well-known trader John Bollinger, the unsuccessful Bitcoin November pattern projected a price decline. The reason Bitcoin dropped was explained by the seasoned chart specialist. In October, he identified a BTC/USD pattern that caused the price to go toward the upper Bollinger Band. But the pattern didn’t yield the anticipated profit, which he refers to as a failure. This failure was a sign of possible weakness in the market.
We ‘should’ have seen a better gain out of that pattern, so its failure’ was an alert of potential weakness,
Bollinger Warns: Back-to-Back Failed BTC Patterns Show Weakness
He discovered another BB pattern in November, but it failed as well. The cue to stop trading was when Bitcoin reached a new low. According to Bollinger, broken or unsuccessful patterns contain just as important information as successful ones. Failure of a pattern provides valuable insight into the state of the market. According to the renowned trader, he is only really wrong if he disregards his own trading discipline.
Bollinger Explains What Traders Must Watch Now
Building on his analysis, Bollinger stressed that traders should view pattern failures as early warning signs rather than oddities. He pointed out that following the November crash, Bitcoin printed a lower bottom, indicating a clear shift in momentum in favor of sellers. Bollinger claims that these unsuccessful setups demonstrate the growing weariness of bullish pressure. They should make traders reevaluate risk, tighten stops, or take a step back until volatility levels out.
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