As we’ve been witnessing since the beginning of January, bitcoin has been on a very serious roll. It’s shot up nearly $3,000 at the time of writing, beginning the month at a measly $6,900 and then firing up to approximately $9,300.
Bitcoin May Not Be Out of the Dark Just Yet
Why then, are there certain individuals afoot who still don’t think the currency is in great shape? While they acknowledge that bitcoin is doing well and potentially picking itself up out of the doldrums it experienced at the end of 2019, they’re not entirely convinced that the bear run – which initially began in the summer of last year – has reached its conclusion.
One such person is John Bollinger, a financial analyst and author. Known for his Bollinger Bands technical chart indicator, Bollinger has become something of an authoritative figure when it comes to predicting where bitcoin will wind up in the coming future. In a recent interview, he states that while bitcoin’s doing well, he’s having difficulty accepting that it has potentially released itself from the bearish hold it was in last November-December.
I’m very constructive on bitcoin’s price right now. We’ve completed a meaningful bottom formation… We broke out, pulled back from very short term, made a little test of the breakout level and rallied higher.
Continuing, he says that while bitcoin is looking pretty good for the time being, he needs more evidence to be able to state officially that bitcoin has wrenched itself from bearish hands:
We just made an intermediate term bottom and just started up. We need some more evidence here in terms of a bigger picture, but I think the outlook is pretty constructive right now.
Bitcoin started the month off on a high note following political tension between the United States and Iran. From there, CME Group in Chicago announced that it was on the verge of releasing bitcoin futures options trading, which ultimately caused the currency to spike even further into the $8,000 range.
This Looks Familiar…
But as we’ve seen in the past, little snippets of news like this can sometimes only last so long. In October, for example, we read that Bakkt was continuing to break all sorts of futures trading records. This followed positive blockchain comments from Chinese president Xi Jinping, who stated that bitcoin’s technology could potentially enhance and revamp his entire country’s infrastructure.
Bitcoin shot up into the $9,000 range then, but things didn’t last. Now, we have other bits of news contributing to the present BTC jump, and again, the currency has swelled into the $9,000 range. As good as it looks, however, it also appears to be a repetition of what occurred during the final months of last year, so crypto enthusiasts should probably take some advice from Bollinger and stay on alert.