The largest and first cryptocurrency in the world by market value, Bitcoin, rose today to above $115,000, reaching an intraday high of $115,670. But John Bollinger, the legendary trader and creator of the Bollinger Bands, believes the move may be a false breakout, and not the start of a fresh rally.
In a post on X, Bollinger said Bitcoin and other cryptocurrencies appear to be forming a “head fake”, a deceptive price move, following a Bollinger Band Squeeze, which usually signals a major shift in volatility.
However, he pointed out that this pattern doesn’t appear on Bitcoin ETFs, which don’t trade on weekends or holidays. He urged analysts to be cautious, suggesting the price may soon reverse direction.
Bitcoin’s bounce comes after reports that U.S. President Donald Trump is considering appointing a rate-cut-friendly Fed governor to replace Adriana Kugler. That news helped spark Monday’s short-lived crypto rally, but BTC quickly fell back to $114,000, raising doubts about momentum. At the time of writing, Bitcoin was trading at $114,311, up 0.44% in the last 24 hours.
Analysts See Resistance, Not Breakout
Crypto expert Ali Martinez warned that Bitcoin faces a major resistance at $117,000. Below current levels, there’s little support between $113,000 and $108,000, creating what he called an “air gap.” Martinez added that Bitcoin could even drop to $95,000, especially if volatility increases.
Tariffs Add Pressure
Geopolitical tensions could also weigh on Bitcoin. The 25% tariffs imposed by President Trump on India, that will go into effect on August 7, threaten to turn into a BRICS-led trade war with Brazil and India prepared to fight back.
Also Read: Bitcoin Dips Below $115K After Trump’s Fresh Tariff Orders
