Calm Before The Storm? 7,000% ROI Bitcoin Signal Resurfaces

Tony "The Bull" Severino

1 year ago

3 mins read

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Bitcoin price gained more than 20% since last Friday, when the top cryptocurrency by market cap retested $20,000, briefly falling below the level.

The calm before the storm might be starting to break, with BTC about to unleash a powerful rally. That’s according to the Bollinger Band Width, which is the second tightest in the history of Bitcoin. The last time this signal appeared, BTCUSD climbed more than 7,000%.

Bitcoin Volatility Drops, But Could Be Calm Before The Storm

Bitcoin is known for its volatility. The cryptocurrency goes on several thousand percent rallies, only do later erase as much as 80 to 90% of it.

For the last several months, BTCUSD hasn’t moved much in relative terms to historical price action, resulting in a lull in the cryptocurrency’s characteristic volatility. That lull is evident in how tight and narrow the Bollinger Bands are on the 2-week timeframe.

The Bollinger Bands are the second-tightest in the history of crypto | BTCUSD on TradingView.com

According to Bollinger Band – a measure of how wide or narrow the Bollinger Bands are at any given moment – Bitcoin is at the second-tightest the bands have ever been. In other terms, volatility is the second-lowest ever on the 2-week timeframe.

The only time the bands were ever this tight before, was in 2015 and the number one crypto asset by market cap went on to rally by 7,500%.

Is An Explosive Bull Rally Coming Soon To Crypto?

Bollinger Band Width only shows one side of the story: volatility at historical lows. It says nothing about the direction Bitcoin might take.

The Bollinger Bands themselves consist of a 20-period simple moving average and two standard deviations. After the bands contract, they expand to release and extreme build up of energy. Simply put, when the bands expand, the breakout will be powerful – strong enough to set the trend.

Staying above the middle-BB is a bullish statement | BTCUSD on TradingView.com

Currently, the 2-week Bollinger Bands are above the mid-line, suggesting that the direction is up. Holding above the level in the past has resulted in some of the largest bull runs in crypto.

In a surprise bounce from last Friday’s under $20,000 retest, Bitcoin held its fourth consecutive candle close above the middle-Bollinger Band and is now making a move higher.

BTCUSD is up 20% already in the last 72 hours. If the Bollinger Bands start to expand, the rally might not stop for some time.

#Bitcoin 2W Bollinger Bands are the second-tightest in BTCUSD history.

The last time resulted in a 7,500% rally. People are going to feel very under-exposed very quickly I think. pic.twitter.com/RZKVY5fw74

— Tony "The Bull" Severino, CMT (@tonythebullBTC) March 13, 2023

Follow @TonyTheBullBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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