Renowned technical analyst and creator of Bollinger Bands, John Bollinger, has shared an optimistic outlook for Bitcoin amid the current sell-off. Bollinger suggested on social media platform X that the market might be moving past the “sell on the news” trend, particularly referring to the recent approval of spot Bitcoin ETFs by the SEC.
Rise and Fall of Bitcoin
Bitcoin experienced a notable surge on Friday, gaining 5.52% and briefly surpassing the $42,000 mark. Despite a subsequent dip to $41,429, the cryptocurrency bounced back to the $41,700 range. This upward movement follows a substantial 7.86% increase since February 23, indicating resilience after profit-taking triggered by the ETF approvals.
The “sell on the news” phenomenon started when the SEC approved spot Bitcoin ETF issuers, causing a temporary surge above $42,000. However, the sudden crash occurred as traders secured profits and redirected funds towards newly introduced Bitcoin ETFs.
Interestingly, Grayscale Bitcoin Trust (GBTC), turned out to be an exception. Clients withdrew their Bitcoin as the lock-up period ended and GBTC witnessed a huge outflow among the nine issuers. Simultaneously, significant Bitcoin movements occurred on Coinbase Institutional, with approximately $1 billion worth of Bitcoin transferred in and out, signalling increased market activity.
Bollinger’s positive sentiment stands in contrast to the prevailing skepticism, hinting at a potential shift in short-term market dynamics. His observation suggests a departure from the conventional “sell on the news” strategy, focusing on the need for strategic analysis in navigating Bitcoin’s evolving landscape.
The evolving trends in the cryptocurrency market, including the recent surge and outflow through active Bitcoin addresses, suggest that the influence of “sell off news” from traders. Bollinger suggests this trend is soon to end.