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for bitcoin price “path of least resistance is up”

Key facts:

In the past, this analyst has made accurate forecasts regarding bitcoin.

If the price of bitcoin increases by 11% it would reach the all-time high of 2017.

Technical analyst John Bollinger is bullish on the price of bitcoin (BTC). For him, the first cryptocurrency is ready to “get back to racing.”

Bollinger, on his Twitter account, acknowledged being wrong days ago when saying that there was the possibility of a correction. “All we got was a bit of consolidation,” he explained.

Furthermore, the expert said that breakouts like the ones seen on the BTC chart against the US dollar in recent days, “are signs of strength, so currently the path of least resistance is up.”

Using the indicator that bears his last name, in combination with other analysis tools, Bollinger made accurate forecasts in recent months regarding the price of bitcoin in the short and medium term.

Bollinger also made mistakes. For example, as mentioned, November 9 had predicted a correction in the bitcoin price followed by “some consolidation.” He accompanied his words with a graphic explanation on the TradingView platform, where it is seen that he uses his own method to reach this conclusion.

In September Bollinger had forecast a forthcoming correction followed by some consolidation. Source: John Bollinger / Twitter.com

On that occasion, some Bollinger followers considered it impossible for the analyst to be wrong. One of them wrote: “This man is a mainstay and legend in finance and deserves a blue check mark! Please do the right thing and listen to him.

What are Bollinger bands?

Bollinger bands are indicators that have been used since the 1980s in technical analysis of financial markets. The graphical representation of the method are two bands that surround the price chart.

Bollinger bands show the potential volatility of an asset. Source: Binance.com

Bollinger bands are calculated from a moving average (usually over a 20-day period), which can be simple or exponential, over the closing price. Then the upper and lower lines are calculated, which are based on the asset’s volatility relative to the average. The standard deviation must be multiplied by 2.

The bands expand when the market volatility is high and, on the other hand, if the volatility is low, they contract, that is, they approach the middle line.

This, which is one of the favorite tools of financial technical analysts, is not usually used individually, but rather it is combined with other indicators.

The forecasts that can be made with this indicator are not infallible and even their own creator does not claim that they are. In the face of mistakes Bollinger made in the past regarding the price of bitcoin, he simply said, “This is not the first time I have been wrong and it certainly will not be the last.”

At the time of writing, each BTC is worth $ 17,673. It should increase by 11.27% to reach the historical maximum of USD 19,665 reached almost 3 years ago, on December 16, 2017.