Bollinger Bands Suggest Bitcoin Bottom Won’t Fall Under $55k

A crypto analyst used Bollinger Bands and RSI data to argue Bitcoin’s bear market bottom will not pass under $55,000.

A crypto analyst argues that maximum pain for Bitcoin this cycle will be a fall to $55,000, based on technical indicators — rather than the $35,000 that some predict.

A fall to $35,000, as predicted by some, would represent a 72% retracement.

It has happened before. Bitcoin fell by 77% from a high of $69,000 in November 2021 to a bottom of $15,500 a year later in November 2022.

However, analyst “Sykodelic” told his 62,000 X followers on Tuesday that predictions of a Bitcoin plunge to $35,000 in 2026 were “absolute rubbish.”

“For Bitcoin to retrace 75% it actually has to fully expand, and this cycle, it just did not do that,” he said, explaining that those kinds of retraces are only possible because the level of expansion — indicated by relative strength index (RSI) — “makes that level of contraction possible.”

Bitcoin (BTC) is currently down 31% from its early October peak of $126,000, which is not unusual even in a bull market.

Bitcoin prices have never fallen below the Bollinger Bands on the monthly time frame, the analyst said.

They compared the cycle to 2017, which saw huge gains, but the retrace still didn’t fall below the monthly lower Bollinger Band. After the weakest expansion ever, why would it have the deepest contraction? they questioned.

Jeff Ko, chief analyst at the CoinEx exchange, told Cointelegraph even a correction to $55,000 is unlikely, arguing that “the bear-case scenario would see Bitcoin revisiting the $65,000 to $68,000 levels.”

Source: CoinTelegraph