Legendary trader John Bollinger says the next price target for bitcoin could be anywhere from $48,000 to $50,000.
He wrote this on his official profile on Twitter, saying a bottom may have formed in recent weeks and prices are trying to start rising again.
According to their analysis, at this point, the target for this potential increase would be a range between $48,000 and $50,000.
He did not specify the timing of this hypothesis, but it is likely that he was referring to the short term, that is, the trend of today.
Who is John Bollinger and what does he think about Bitcoin?
John Bollinger is a financial analyst famous for inventing the famous “Bollinger bands”, a technical tool to measure and monitor the volatility of the prices of a financial asset.
Bollinger is also known for overlapping technical and fundamental analysis, so much so that, to bridge the gap between these two approaches, he advocates another approach called “rational analysis”, defined precisely as “joining the overlap between technical and fundamental analysis”.
It is well known that technical analysis is often problematic when applied to cryptocurrencies, for which fundamental analysis is generally preferred. But technical analysis aims to provide faster and more accurate indications, especially on short-term trends, so it is also commonly applied to the cryptocurrency market.
Bollinger’s approach could allow for more valuable analysis for cryptocurrencies precisely because he uses fundamental and technical analysis simultaneously.
Furthermore, Bollinger is not the only analyst to argue that a new fund may have formed in May for bitcoin prices in the $30,000 to $31,000 range. If that’s the case, the current climb to $40,000 could prove solid.
There are also a number of fundamental analysis indicators that suggest the downtrend of previous weeks may have reversed this week, as so-called hodler flows turned positive for the first time since October 2020.
When these flows are negative, it means that even long-term bitcoin holders are likely to be selling, while when they are positive it means they are likely to be piling up.