Bitcoin Rally May Be Exhausted as Bollinger Sees Three Pushes to a High Pattern

John Bollinger, the renowned financial analyst and creator of the Bollinger Bands indicator, has recently suggested that Bitcoin's rally may be nearing exhaustion. Bollinger highlighted a "Three Pushes to a High" pattern on Bitcoin's chart, which typically signals the end of a rally phase. This pattern is characterized by three successive attempts to break higher, with each push achieving smaller gains, indicating weakening buying pressure.

Bitcoin's price has been hovering around $105K, showing a slight decline of 0.99% in the last 24 hours and a 3.39% drop in the past week. Despite this, the price has managed to stay within a range of $103K to $108K over recent days. However, several technical indicators suggest that Bitcoin's current upward momentum is weakening. Bollinger's observation of the "Three Pushes to a High" pattern adds further weight to these concerns.

The first push reached $93,777 in late April, the second hit $104,063 in early May, and the third touched an all-time high of $111,800 later in May. The diminishing returns from each successive attempt signal that the rally may be losing steam. Additionally, the Relative Strength Index (RSI) reached an unusually high level, suggesting that Bitcoin's price may soon face a correction or a period of consolidation. The overbought condition is particularly evident as the RSI surpasses the 0.7 mark, a typical signal of an overstretched market.

Bitcoin's momentum also appears to be slowing down. The momentum indicator, represented by a black line on the chart, rises in tandem with Bitcoin's price but starts to decline after reaching the recent all-time high. Bollinger mentioned that the "Three Pushes to a High" pattern on Bitcoin's chart marked the end of the current rally phase. One commenter expressed the view that the current signals indicate a local exhaustion, suggesting that a pullback or consolidation phase is more likely than a full trend reversal. Bollinger agreed, stating that he shares the same perspective. When asked whether Bitcoin was about to hit the lower Bollinger Band, Bollinger replied that he was uncertain and would be looking for the next good setup.

The market has seen a sharp decline in the activity of large Bitcoin holders, further supporting the notion of a slowing rally. In the last week, the large holders’ inflow dropped by 49.17%. Over the past month, the metric has fallen by 10.25%, and in the last 90 days, it has plunged by a significant 95.16%. This sharp decline in large-holder activity suggests that institutional and high-net-worth investors are pulling back.

Amid the uncertainty surrounding Bitcoin’s price action, seasoned crypto analyst Crypto Beast has advised investors to shift their focus toward altcoins. He pointed out that Bitcoin’s rally, which saw a 121% increase last year and a near 13% rise this year, may be nearing its peak. While Bitcoin’s market cap dominance has been trending upwards, Crypto Beast suggests that the real opportunities now lie within the altcoin market. He also noted that Bitcoin dominance is close to its resistance level, suggesting an imminent decline that would likely benefit altcoins.