Bitcoin (BTC) prices accept recovered by more than 60% to $47,486 afterwards bottoming out below $30,000 on July 20, triggering anticipations of an extended bull market place toward $100,000. But to John Bollinger, a historic contributor to the field of financial analysis, investors should refrain from buying the benchmark cryptocurrency at electric current prices.

Bollinger advised in his Tuesday tweet that investors could secure their Bitcoin profits or build a hedge position elsewhere to offset potential BTC/USD reject risks. Explaining his cautious outlook, Bollinger noted that "aggressive traders tin call up well-nigh putting out some shorts," which, in turn, could push the Bitcoin prices lower in the coming sessions.

"Hodlers can look [to] add at lower levels if we run across them. No confirmation however, just be on the alarm."

Could Bitcoin hit $41,000?

The statements appeared as Bitcoin underwent a correction subsequently reclaiming its three-calendar month high of $50,505. In doing and then, the cryptocurrency fell by half dozen.70% to $47,122, signaling a strong bearish presence around the $50,000 price area.

Scott Melker, the author of the "Wolf Den Newsletter," expected Bitcoin to autumn toward the $41,000–$42,000 range in the coming sessions. Nevertheless, the independent market place analyst asserted that such a pullback would still exist good for you — a "heavy load up zone" that would pb to a price rebound.

BTC/USD weekly setup by Scott Melker. Source: TradingView

Another pseudonymous marketplace analyst, CryptoHamster, shared a similar bearish outlook but based their analogy on a technical pattern chosen ascending channel. The pseudonymous analyst illustrated Bitcoin testing the channel'south support trendline for a potential breakout move to the downside. They tweeted:

"Bitcoin could have one more than bounce here (chart below) or at that place will be a breakout to the downside. And information technology will define the mid-term trend to a smashing extend."
Bitcoin ascending channel setup by CryptoHamster. Source: TradingView

The ascending aqueduct short target in CryptoHamster's BTC/USD chart was below $41,000.

Bollinger's technical indicator, called Bollinger Bands, spotted Bitcoin holding above the twenty-solar day elementary moving average as interim support at around $46,750. Yet, a suspension beneath the so-called signal line risked sending BTC/USD toward the lower Bollinger Band around $42,670, every bit shown in the nautical chart below.

Bitcoin daily cost chart featuring Bollinger Bands setup. Source: TradingView

$100,000 Bitcoin predictions

Bitcoin's correction from $50,000 does not necessarily mean the offset of a bear market, especially every bit analysts continue to project half-dozen-figure valuations for the cryptocurrency.

For instance, Lyn Alden, the founder of Lyn Alden Investment Strategy, told Business Insider that Bitcoin has an incredible potential to have reached $100,000 past next year, stating that the cryptocurrency is "all the same in kind of the early-to-mid stage of its long-term trajectory."

Related: Options traders aim for $100K Bitcoin past the end of 2022 — Is there a chance?

Bloomberg Intelligence senior commodity strategy Mike McGlone as well envisioned the aforementioned price target for Bitcoin in hopes that information technology would attract capital from the golden market. Iqbal Gandham, vice president of transactions at Ledger, also said Bitcoin would surge to $100,000 in the second half of 2022. He told MarketWatch:

"With all the movement, whether information technology be noise effectually ETFs or countries adopting BTC as legal tender, one could hands presume that this is where BTC would rest past the end of the year."

The views and opinions expressed here are solely those of the author and practise not necessarily reflect the views of Cointelegraph.com. Every investment and trading motility involves risk, yous should behave your own research when making a determination.