Ultimate magazine theme for WordPress.

Bitcoin Bollinger Bands reach a key zone as BTC price struggles around $27,000

Bitcoin (BTC) could see new bullish volatility as BTC price strength returns to key levels, a classic metric suggests.

In a post by X (formerly Twitter) on September 18, John Bollinger, creator of the Bollinger Bands volatility indicator, said that Bitcoin is poised for a breakout decision.

Bitcoin Bollinger Bands Look to Beginning of “Walk Up”

After hitting new September highs the day before, Bitcoin has been battling unattainable resistance levels since mid-August, data from Cointelegraph Markets Pro and TradingView show.

For Bollinger, the signs of the largest cryptocurrency are encouraging. Bollinger Bands use the standard deviation around a simple moving average to determine both likely price ranges and volatility.

Currently, BTC/USD is setting up daily candles touching the upper band. If this happens, it may indicate an impending reversal back to the mid-band or, conversely, a rising rise in bullish volatility.

The narrow Bollinger Bands recently observed in Bitcoin reinforce hopes that the latter scenario is now coming true.

“And there is the first mark of the upper Bollinger band after a new set of control bars has been established on the lower band,” Bollinger commented alongside a chart.

“The question now is, can we go up the upper band? Too early to answer.”BTC/USD 1-day chart with Bollinger Bands. Source: TradingView

Cointelegraph reported the tightening of ranges in July – an event that ultimately preceded a return to lower levels.

BTC price reset “pretty reasonable”

Bollinger characterizes the current sentiment among experienced Bitcoin traders and analysts on short time frames.

Related: FOMC versus BTC price “local bottom” – 5 things to know about Bitcoin this week

Despite the strength observed this week, caution is warranted as various trendlines that previously served as support remain above the spot price.

Discussing the situation, on-chain monitoring resource Material Indicators urged X subscribers to question the bulls’ momentum.

“We have strong technical resistance at the key moving averages and support at the LL,” part of the commentary reads.

“It is entirely possible that we will round the range and with any luck we will see legitimate tests of R/S levels that will give us clarity on where BTC goes from here before the end of the week.”

Key indicators pointed to the US Federal Reserve’s upcoming interest rate decision, which could lead to sudden volatility and untrustworthy short-term trading signals.

UPDATE 2: As mentioned, #BTC bulls appear to be gaining some momentum, but things are not always as they seem. Let me explain…

Sometime after the close/open of the candle last night we saw a new trend prediction signal develop on the daily chart and NOW we have a new one… pic.twitter.com/V0UI7JznKf

— Material Indicators (@MI_Algos) September 18, 2023

This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making their decision.

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers

Comments are closed.