Financial analyst John Bollinger urges caution in Bitcoin trading

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Bollinger urges caution in Bitcoin market.

In a tweet on Wednesday, John Bollinger reveals that he has been silent on the crypto markets as the dynamics keep changing, expressing his views by highlighting recent Bitcoin price action.

“I haven’t posted much on crypto trading recently as it seems the dynamics of trading continue to shift. Evidenced by the unusual resolution of the recent BB Squeeze in BTCUSD.

We are always trading systems while monitoring the environment,” Bollinger tweeted.

Bollinger, clarifying what he meant by unusual resolution, explains that a compression of the Bollinger band usually leads to increased volatility. However, in Bitcoin’s case, five days of wide-ranging price action followed.

When asked if that was a good sign, Bollinger noted he wasn’t sure, but urged traders to exercise caution in the markets. “If only I knew. All I know is that there are a lot of changes in the dynamics of trades on a multitude of vehicles and you have to be very careful,” replied the analyst.

In particular, while refraining from saying it with certainty, the famous inventor of the Bollinger bands noted that the market seems to form a price floor.

Unrealized expectations and prospects

It should be noted that the crypto market in 2022 has not moved as much as expected. At the peak of the bull run in 2021, several experts predicted that Bitcoin would hit the $100,000 price level in the first quarter of 2022. However, Bitcoin has since crashed over 70% from its early peak. november.

The current bear market has been attributed to difficult macroeconomic conditions combined with the collapse of crypto ecosystems like Terra, which has led to a domino effect that has seen several crypto lending companies collapse.

It should be noted that while bear cycles are regular in the crypto market, the current bear market is quite different. Market analyst Justin Bennett noted in July that this is the first time the crypto market has faced macro inflation and recessionary issues. Bennett stressed that applying measures from previous bear cycles to the current bear market is dangerous without a harsh reassessment.

While several analysts have refrained from explicitly calling the bottom, most agree that it is close. Bitcoin is trading at a price of $21,716.54, up 1.53% in the past 24 hours.

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