Bitcoin price action on month-to-month timeframes has made a historic transfer to the contact the decrease Bollinger Band – a well-liked technical indicator and volatility measuring device.
Although he warns there isn’t but an indication {that a} backside is in, the device’s creator says the place worth motion tapped is a “logical” stage for such a backside to happen.
Unprecedented Bitcoin Price Action Taps Monthly Bollinger Band For First Time In History
Expectations for Bitcoin worth in 2022 have been nearer to $100,000 per coin and above. Yet the highest cryptocurrency as we speak is buying and selling near its former 2017 all-time excessive at $20,000.
But unprecedented macro situations has brought about unprecedented worth motion in Bitcoin and different cryptocurrencies. Never previously has the highest cryptocurrency by market cap retested its former all-time high this way.
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And by no means did Bitcoin worth on month-to-month timeframes ever attain the decrease Bollinger Band. But that’s precisely what occurred this previous month when crypto market contagion unfold and introduced asset costs down significantly.
BTCUSD month-to-month touches down on the decrease Bollinger Band | Source: BTCUSD on TradingView.com
Touching the decrease Bollinger Band, nonetheless, could possibly be a logical place for a backside based on the device’s creator.
Time To Pay Attention: John Bollinger Points Out Logical Level For Potential Bottom
The Bollinger Bands are a technical evaluation device that may assist to measure and predict volatility, or discover areas of potential resistance and assist. It was created within the Eighties by John Bollinger, who as we speak is a frequent Bitcoin speculator. It depends on a 20-period easy shifting common and a dynamic higher and decrease band set every at two commonplace deviations.
Mr. Bollinger identified the contact of the decrease Bollinger Band in a new tweet, the place he suggests the world can be a “logical” stage to backside. Bollinger did warn, nonetheless, that there nonetheless aren’t indicators of such bottoming but.
In the previous, Bollinger was able to call out the April 2021 peak by recognizing a “three pushes to a high” bearish reversal sample with hanging accuracy. The analyst says his instruments later confirmed what he says was an “M-type” double high.
Picture excellent double (M-type) high in BTCUSD on the month-to-month chart full with affirmation by BandWidth and %b results in a tag of the decrease Bollinger Band. No signal of 1 but, however this may be a logical place to place in a backside.https://t.co/KsDyQsCO1F
— John Bollinger (@bbands) June 27, 2022
Bollinger additionally shared in his chart a have a look at ancillary indicator, B%, which additionally has set historic lows. Monthly Bollinger Band Width can be utilized to measure volatility, and nonetheless has room to fall compared to past cycles.
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Does Bitcoin worth have extra room to fall additionally? Or will a backside type on this “logical” zone because the device’s creator calls consideration to? Either means, it appears to be “time to pay attention.”
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Featured picture from iStockPhoto, Charts from TradingView.com
