"I bought it directly!" Bollinger Bands creator even bets on Bitcoin's bullish trend

▲ 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, directly entered a long position.

According to the 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. The 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 broke above the upper Bollinger Band and some trend lines, it is still entering a strong resistance zone. He explained that most short position liquidations have been cleared from the market, while a large amount of long position liquidations remain up to the $74,000 range. Conversely, he diagnosed that there are relatively fewer short liquidations remaining 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 is used to judge whether the market is overheated, is also gaining 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 that an overheated state alone cannot definitively conclude an immediate price reversal.

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