Bollinger Bands Creator Believes the Crypto Market Has Less Noise | BTCMANAGER
Bitcoin, Blockchain & Cryptocurrency News
John Bollinger, the creator of the widely used Bollinger Bands, has revealed that he has been in the crypto market for over three years. In an interview with Forbes, August 22, 2019, Bollinger revealed he entered cryptocurrency because he saw that it operated with less noise than the stock market. Bitcoin in 2016 was reminiscent of the stock market before S&P futures contact launched, according to Bollinger.
Technical Analysis in Cryptocurrency
The entire notion of price charts and trading cryptocurrencies has become a taboo within the inner circle of bitcoin maximalists. But by zooming out of this limited perception, one can see that the lack of complex financial infrastructure allows the spot market to dominate, rendering technicals all the more useful.
John Bollinger opines that the lower degree of high-frequency trading and scalper in comparison to traditional markets has helped the price action reflect demand and supply without being heavily skewed.
Three years ago, Bollinger tested his theory and it turned out he was correct. His interest in the asset class grew as he realized it was a vehicle behaving in line with classical technical analysis.
According to Bollinger, the stock market is riddled with noise, and it has been since the introduction of futures and ETFs. He pinpoints ETFs, claiming that they weld the price action of many companies together – companies that otherwise would have independent price action.