Bitcoin, the largest digital currency in terms of market value, recorded a remarkable increase today, bypassing the $ 115,000 barrier, to reach the highest daily level at 115,670 dollars, before it later declined to 114,311 dollars, a slight increase of 0.44% during the past 24 hours.
Despite this height, American financial expert John Bollinger, the innovator of Bollinger Bands, warned of the possibility that this move would be just a “head fake”, that is, a misleading price movement, and not the beginning of a new climbing wave.
The term Head Fake or the “vertical trick” is used in the technical analysis of financial markets, and indicates a temporary and misleading price movement that suggests the start of a new direction (climbing or declining), but it is soon reflected in the opposite direction.
In a post on the “X” platform (X “, this pattern came after the Bollinger Band Squeeze, a technical indicator, often precedes major transformations in market fluctuations, but indicated that this style does not appear on the Bitcoin Etfs, due to its lack of circulation on weekends, calling Analysts are cautious about the possibility of reflection of the direction soon.
Technical resistance and warnings of a possible decline
For his part, digital analyst Ali Martinez indicated that Bitcoin faces a strong resistance level at 117 thousand dollars, while prices lack sufficient support between 113 thousand and 108 thousand dollars, which he described as the “air gap”, warning of the possibility of the price declining to 95 thousand dollars in the event of escalating fluctuations.
Geopolitical pressures add to challenges
In a related context, geopolitical tensions may affect the performance of Bitcoin, especially after the announcement of the imposition of customs duties by 25% on India, as of August 7, threatening the outbreak of a trade war led by the BRICS group, in light of India and Brazil’s willingness to respond.
Media reports have indicated the possibility of appointing a new member of the Federal Reserve (Federal Reserve), which tends to reduce interest rates, succeeding Adriana Kugler, which contributed to stimulating a short wave of digital currencies early week.
