John Bollinger Warns of ‘Head Fake’ as BTC Price Bounces

Bollinger Band creator John Bollinger has commented on the BTC price action, following the flagship’s crypto bounce above $115,000 today. Based on the legendary analyst’s analysis, this move might be a false breakout rather than a bullish continuation.

John Bollinger Says The BTC Price Is Showing A Head Fake

In an X post, the legendary analyst revealed that Bitcoin and several other cryptocurrencies are setting up a head fake after a Bollinger Band Squeeze. He added that this pattern is not evident in the ETFs as they do not trade on weekends and holidays. Bollinger also advised analysts to beware of this pattern.

A head fake indicates that the BTC price could make a false move before it then trends in the other direction. Interestingly, Bollinger’s analysis comes at a time when the flagship crypto, along with the broader crypto market, is rebounding.

TradingView data shows that Bitcoin has again broken above the psychological $115,000 level, reaching an intraday high of $115,700. This has brought about speculations that the choppy price action, which had begun at the start of the week, might already be over with another breakout on the horizon.

Bollinger also indicated that the consolidation may be over based on his mention of the Bollinger Band Squeeze. However, instead of a breakout, investors may end up seeing a breakdown from the BTC price after this false move to the upside.

Notably, Bitcoin and the broader crypto market had rallied on Monday following reports that Trump was looking to announce a rate-cut-friendly Fed Governor to replace Adriana Kugler. However, it then dropped back to the $114,000 region, sparking frustrations among investors.

Bitcoin Is In A Tight Spot

Crypto analyst Ali Martinez stated that the BTC price is in a tough spot. He explained that there is a massive resistance wall at $117,000 while an air gap looms below, with little support between $113,000 and $108,000.

This indicates that the leading crypto is more likely to drop to the downside than witness another sustained bullish momentum. It is worth mentioning that the crypto analyst had also raised the possibility of BTC dropping below $100,000 again, reaching $95,000 in the process.

Factors such as the Trump tariffs, which take effect from August 7, could contribute to a potential decline in the BTC price. Moreover, Brazil wants to summon the BRICS Alliance to put up a united front against the reciprocal tariffs.

This could lead to a full-blown trade war as India is also greatly affected by these tariffs following Trump’s move to impose an additional 25% tariff on the country. There was already an existing 25% reciprocal tariff on goods from India.