- Yesterday, John Bollinger had cautioned that Bitcoin’s attempt at $20k is a classic top setup
- Bitcoin has since dropped from $19,900 to $18k in a flash crash
- The 50-day moving average seems like a good area for a bounce
- Other macro support zones lie at $16,300, $15,600 and $14,800
Late yesterday, the inventor of the popular charing tool of Bollinger Bands, John Bollinger, cautioned Bitcoin traders that BTC might have printed a classic top setup. Mr. Bollinger went on to explain that the setup was yet to be confirmed but seasoned traders ‘should wash their hands’.
Mr. Bollinger’s statement can be found below along with a screenshot of the Bitcoin chart that he shared to further elaborate his idea.
OK, time to pay attention, $BTCUSD. That is a classic top setup. No confirmation yet and the setup could easily be overrun, but wise traders should wash their glasses.
If You Can’t Take the Heat, Get Out of the Kitchen – Bollinger
Mr. Bollinger would later add to his analysis by using an old saying referring to the general situation of Bitcoin. According to Mr. Bollinger, ‘if you can’t take the heat, get out of the kitchen’. Mr. Bollinger went on to add that he likes the heat. His comments can be found in the following tweet.