Bollinger Warns: Bitcoin's $115K Bounce Could Be a 'Head Fake'
Bollinger Flags Potential 'Head Fake' in Bitcoin Price
John Bollinger, the renowned creator of Bollinger Bands, has weighed in on Bitcoin's recent price action. Following a notable bounce above $115,000, Bollinger suggests this move could be a 'head fake,' rather than a genuine bullish signal.
Bollinger's Analysis: A False Breakout?
In a recent X post, Bollinger highlighted a potential head fake pattern forming in Bitcoin and other cryptocurrencies after a Bollinger Band Squeeze. He noted that this pattern is less visible in ETFs due to weekend and holiday trading gaps, advising caution to analysts.
A 'head fake' implies that Bitcoin's price might make a deceptive move before reversing direction. Bollinger's warning arrives as Bitcoin and the broader crypto market show signs of recovery.
TradingView data indicates Bitcoin briefly surpassed $115,000, reaching an intraday high of $115,700. This has fueled speculation that the recent choppy price action might be concluding, with a breakout on the horizon.
Bollinger's mention of a Bollinger Band Squeeze suggests a possible end to the consolidation period. However, instead of a breakout, a breakdown may occur after this initial upward move.
The market initially rallied following reports of a potential rate-cut-friendly Fed Governor appointment, but Bitcoin later retreated to the $114,000 range.
Analyst Highlights Key Bitcoin Levels
Crypto analyst Ali Martinez notes Bitcoin's precarious position, citing significant resistance at $117,000 and limited support between $113,000 and $108,000.
Bitcoin $BTC is in a tough spot. There’s a massive resistance wall at $117,000, while an air gap looms below, with little support between $113,000 and $108,000. pic.twitter.com/QFFPJH3NsL
— Ali (@ali_charts) August 6, 2025
Martinez suggests a higher probability of a downward move, even raising the possibility of Bitcoin falling below $100,000, potentially reaching $95,000.
Upcoming Trump tariffs, effective August 7, and Brazil's push for a united BRICS front against these tariffs could exacerbate downward pressure on Bitcoin's price. These factors could lead to a broader trade war, impacting countries like India, which faces increased tariffs from the U.S.