The creation of the Strategic Bitcoin Reserve failed to meet the expectations of the crypto market, resulting in Bitcoin’s valuation dropping 10.66% this week.
What’s Next for Bitcoin (BTC)?
If anyone offers a concrete answer, they would be lying. However, we can build expectations using indicators, such as the Bollinger Bands. This tool, created by John Bollinger, benchmarks asset movements and helps determine if an asset is oversold or overbought, along with identifying critical price points.
Bad and Worse
The Bollinger Bands present a troubling picture for Bitcoin. Currently, Bitcoin is trapped between the middle band and the lower band, which is above $80,411. This vulnerability could lead to a 4% drop to the lower range. A rise above the middle band at $90,200 in the coming hours is unlikely.
The weekly chart shows a similar bleak situation, with Bitcoin also between the middle and lower bands. The lower band is at $73,000, indicating a potential 12.3% drop in the medium term if current trends continue.
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