Bollinger issues a warning: Is Bitcoin falling into a 'bear market trap'?
Bitcoin dropped to 111919 at one point this Monday, causing many traders to panic and exit.
However, John Bollinger (founder of Bollinger Bands)
has issued a reminder: this could be a typical 'bear market trap'.
What is a bear market trap?
Sudden price drop → Short sellers enter or long positions are liquidated → Market rebounds quickly → Short sellers are forced to cover, creating a reversal.
After this drop, the strong rebound has now brought the price back up to 115229, seemingly validating Bollinger's viewpoint.
My trading strategy observation:
The Bollinger Bands have recently narrowed significantly, indicating that market volatility is about to explode.
Is breaking below the lower band a false breakout? Or is it building momentum for the next rebound?
The current price running back near the middle band, if it stabilizes above 116000, will open up upward space.
Operational thought sharing:
If confirming 'false drop, true rise', accumulate long positions on dips + pay attention to volume cooperation;
If it breaks down the middle band again with increased volume, then we need to guard against deep correction risks and take profits in time.
What do you think about the current BTC volatility?
Have you shorted it, or do you really see it as a 'trap'? @加密凌墨
Feel free to leave a comment for discussion👇👇👇
