The failed Bitcoin November pattern predicted a negative price move, according to prominent trader John Bollinger
Veteran chartist John Bollinger recently took to the X social media network to explain why Bitcoin has plunged.
Bollinger spotted a BTC/USD pattern in October that led the price toward the upper Bollinger Band.
However, the pattern didn’t produce as much profit as expected, which he calls a “failure.” This failure served as a warning of potential market weakness.
“We ‘should’ have seen a better gain out of that pattern, so its failure’ was an alert of potential weakness,” Bollinger said in a recent social media post.
In November, he spotted another BB pattern, which also ended up failing.
Once BTC made a new low, that was the signal to exit the trade.
Bollinger has noted that “broken” or failed patterns carry just as much useful information as successful patterns. When a pattern fails, it tells you something important about the market environment.
The legendary trader has said that he is only truly “wrong” if he ignores his own trading discipline.
Tom Lee speaks out
Fundstrat’s Tom Lee, whose Ethereum treasury giant BitMine is currently sitting on billions of losses, also weighed in on the recent market crash during an interview with CNBC.
“You know, I think the crypto market has been limping along since October 10th … that liquidation was so big…it really crippled market makers,” Lee said.
Lee attributed the wipeout to the coding error that triggered extreme forced develeraring.