"I bought it myself!" Bollinger Bands creator also bets on Bitcoin bull run

▲ Bitcoin (BTC)/ChatGPT generated image ©

Market tension is rising again as Bitcoin (BTC) attempts to break above the upper Bollinger Band for the first time in several months. The bullish sentiment is spreading, especially after John Bollinger, the developer of the indicator, personally entered a long position.

According to investment media FXStreet on May 7 (local time), Bitcoin recently recorded its second daily close above the upper Bollinger Band. This is the first time since mid-January. Bollinger Bands are a representative technical indicator that measures volatility and momentum, and Bitcoin has recently formed its narrowest band width ever, raising the possibility of a large directional breakout.

However, market reactions are mixed. Trader SuperBro analyzed that while Bitcoin has broken through the upper Bollinger Band and some trend lines, it is still entering a strong resistance zone. He explained that most short position liquidations in the current market have been cleared, while a large amount of long position liquidations remain up to the $74,000 range. Conversely, he diagnosed that relatively few short liquidations remain above $85,000.

Nevertheless, the upward momentum itself is being maintained. SuperBro stated that there are no clear signs of a bearish reversal yet, and he is maintaining his current position while watching for further breakout possibilities. Furthermore, John Bollinger, the creator of the Bollinger Bands, also revealed that his investment fund operating model has turned positive for Bitcoin and that he has actually entered a buy position.

The Market Value to Realized Value (MVRV) indicator, which assesses market overheating, is also attracting attention again. According to the media, the MVRV-based Bollinger Band oscillator for short-term investors entered the 'overheated' zone for the first time since late 2024. At that time, Bitcoin was preparing to attempt to break $100,000 for the first time in history.

However, there is also an analysis that an overheating signal does not necessarily mean a bearish reversal. Analysis account Frank Fetter explained that the current indicator trend may simply reflect strong upward momentum, and an overheated state alone cannot definitively conclude an immediate price reversal.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*