Bitcoin (BTC) holds steady above $6,900 despite oil plunging to negative prices, but trading legend John Bollinger predicts a major move
Trading guru John Bollinger says that Bitcoin (BTC) and altcoins are currently approaching a “squeeze territory.”
It means that it’s high time for traders to pay attention since another significant move might be just around the corner.
Calm before the storm
Bollinger is famous for coming up with the Bollinger Bands (BBs) trading indicator that helps to predict the price action of a certain asset based on its volatility.
When the bands are getting too close, they create a setup for the “Bollinger Bands Squeeze” pattern, which is characterized by a strong price move after a prolonged period of sideways trading.
Bitcoin has been range-bound for days, which means that traders are likely to see some fireworks in the short-term.
A historic day for oil
At the end of a historic day, WTI (the May contract) has closed at -$35.20 after plunging by a whopping -292.67 percent.
As reported by U.Today, the commodity is under pressure due to a double-whammy of oversupply and weak demand.
“The math doesn’t work out. […] Something’s broken in the market ” said CNBC’s Brian Sullivan.
The BTC price has slipped to the $6,900 level, but both crypto and stock markets have managed to shrug off negative U.S. crude prices.