Bitcoin price Bollinger Bands 'failure' risks end of uptrend at $112K

Key points:

• BTC price action has rejected from the upper Bollinger Band several times since April.

• The metric’s creator now sees the potential for the local uptrend to end altogether.

• Bitcoin bulls face multiple headwinds in June.

Bitcoin (BTC) is signalling the end of its local uptrend after rejection at $110,000, one of the best-known trading names says.

In X posts on Friday, John Bollinger, famous for creating the Bollinger Bands volatility metric, called time on Bitcoin’s comeback from April lows.

Bollinger Bands rejection points to BTC price trouble

Bitcoin has displayed classic uptrend behavior since reversing from multimonth lows near $75,000 in early April, Bollinger argued.

Reviewing BTC price action over the past two months, the analyst delineated the rebound into three sections.

After a “W-shaped” double bottom on the Bollinger Bands, BTC/USD delivered three “pushes” higher, each with a brief top and consolidation phase. Each push also offered a trip to the upper Bollinger Band.

Now, after failing to hold all-time highs and continue, the entire local trend could be over.

“Three Pushes now confirmed,” Bollinger wrote in the accompanying commentary.

Discussing the data, he stipulated that three pushes “just means the end of the prior trend” and that the rejection “could usher in a reversal or a consolidation” next.

Bollinger Bands are one of the most popular volatility indicators used to chart Bitcoin and crypto market trends. A narrowing of the bands tends to precede periods of volatility, with BTC/USD frequently encountering unusually “narrow” periods in recent years.

Bitcoin bull run barriers stack up

As Cointelegraph continues to report, Bitcoin faces multiple hurdles to price discovery after making swift gains in May.

Related: $100K becomesbulls” key level: 5 things to know in Bitcoin this week

In addition to upper Bollinger Band resistance, sellers have placed large blocks of ask liquidity between current all-time highs and $120,000.

Geopolitical events focused on the Middle East and US-China trade deal ramifications have complicated the picture for bulls.

“Tensions have now returned to levels last seen in April,” trading firm QCP Capital warned Telegram channel subscribers while discussing crypto and risk assets. 

“Markets are stuck in a bind, bracing for either further escalation or a sudden pivot toward de-escalation through diplomatic channels.”

QCP acknowledged that Bitcoin, in particular, had “remained relatively resilient, which underscores persistent institutional demand.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.