• Advertise
  • Submit a Press Release
  • About Us
NewsBTC
Bitcoin & cryptocurrency news
Sensei Inu Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
    • Gambling
      • Crypto Casinos
      • Real Money Casinos
    • Casinos not on Gamstop
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Win 8.88 BTCTry
  • Play Casino GamesTry
  • Play FinanceTry
No Result
View All Result
Breaking News: Fed Holds Interest Rates Steady, Bitcoin Awaits Trend Reversal Above $27,000
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
    • Gambling
      • Crypto Casinos
      • Real Money Casinos
    • Casinos not on Gamstop
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Win 8.88 BTCTry
  • Play Casino GamesTry
  • Play FinanceTry
No Result
View All Result
Bitcoin News
No Result
View All Result
Breaking News: Fed Holds Interest Rates Steady, Bitcoin Awaits Trend Reversal Above $27,000
Bitcoin
Sensei Inu Logo

Big Bitcoin Move Ahead: Bollinger Bands See Extreme Squeeze

Jake Simmons by Jake Simmons
2 months ago
in Bitcoin
Reading Time: 3 mins read

Since the Bitcoin price reached a new yearly high of $31,840 last week, only to invalidate the bullish breakout within a few hours and fall towards $30,000, there has been a strange tranquility in the market. Already since June 23, BTC has been in the trading range between $29,800 and $31,300, with every breakout attempt to the upside and downside having failed within a very short period of time.

However, one of the most prominent technical indicators, the Bollinger Bands, predict that this calm may soon be over. Created by the esteemed trader John Bollinger, these bands provide invaluable insights into market volatility and potential price levels.

Bollinger Bands Predict Big Move For Bitcoin

The Bollinger Bands consist of three distinct lines on a price chart: the middle band, the upper band, and the lower band. The middle band is a simple moving average (SMA) that represents the average price over a specified period. The upper and lower bands are derived from the middle band, with the upper band usually set two standard deviations above the SMA, and the lower band set two standard deviations below it.

Related Reading: $18 Billion Worth Of Bitcoin Accumulated At $30,200 – BTC Bull Run Incoming?

The primary purpose of the Bollinger Bands is to measure market volatility. When the price of an asset experiences significant fluctuations, the bands widen, indicating increased volatility. Conversely, during periods of reduced price movement, the bands contract, indicating lower volatility. This contraction is commonly referred to as a “squeeze,” where the upper and lower bands come closer together, forming a narrowing price channel.

When the Bollinger Bands squeeze, the potential for a significant price movement looms. The squeeze suggests that the market is in a state of temporary equilibrium, akin to a coiled spring ready to release its stored energy. The direction of the breakout determines whether it’s a bullish or bearish signal.

Up Or Down?

Glassnode, a respected on-chain data provider, highlighted today the current state of the Bitcoin market, noting a remarkably low volatility environment. The 20-day Bollinger Bands are experiencing an extreme squeeze, with a mere 4.2% price range separating the upper and lower bands. This suggests that Bitcoin is currently in a period of limited price movement, “making this the quietest Bitcoin market since the lull in early January.”

Bitcoin Bollinger Bands
20-day Bitcoin Bollinger Bands | Source: Twitter @glassnode

As Bitcoin investors may remember, the Bollinger Bands squeeze in January marked the end of a lengthy downtrend. After the FTX collapse, the BTC market was in a state of shock paralysis, which was ultimately resolved by Bollinger Bands squeeze, leading to a 42% price increase in 26 days.

Related Reading: Perfect Storm: Why Bitcoin & Crypto Are Poised For A Dramatic Recovery

The Bollinger Bands’ squeeze, combined with diminishing trading volumes, creates a scenario of mounting pressure in the Bitcoin market. As trading volume declines, the potential energy stored in this coiled spring intensifies.

According to the analysts at CryptoCon, the bullish scenario is the one to be favored at the moment. “When Bitcoin volatility gets low in a bear market, it’s very bearish. When volatility gets low in a bull market, it’s insanely bullish,” the analysts say. As Bitcoin is unanimously seen to be at the start of a new bull market, a strong move to the upside could be in store.

Bitcoin price
Bitcoin price trading sideways, 1-day chart | Source: BTCUSD on TradingView.com
Featured image from iStock, chart from TradingView.com
Tags: bitcoinBollinger bandsbtcbtcusdcrypto
Tweet123Share196ShareSend
Jake Simmons

Jake Simmons

Jake Simmons has been a Bitcoin enthusiast since 2016. Ever since he heard about Bitcoin, he has been studying the topic every day and trying to share his knowledge with others. His goal is to contribute to Bitcoin's financial revolution, which will replace the fiat money system. Besides BTC and crypto, Jake studied Business Informatics at a university. After graduation in 2017, he has been working in the blockchain and crypto sector. You can follow Jake on Twitter at @realJakeSimmons.

Related Posts

Bitcoin

Bitcoin Enjoys Growing Favorable Conditions, Top Analyst Says

1 day ago
Bitcoin crypto analyst

Crypto Analyst Predicts More Trouble Ahead For Bitcoin Price, Here’s Why

1 day ago
Bitcoin bear

Bearish Signal? Bitcoin Whale Wakes Up From 6-Year Slumber And Transfers $56 Million

2 days ago
Bitcoin price

Is The Bitcoin Price Rally Sustainable? On-Chain Data Provides Crucial Insights

3 days ago
Why is Bitcoin price up

Why Is Bitcoin Price Up Today? BTC Climbs Above $27,000

4 days ago
bitcoin

Glassnode Co-Founders Weigh In On Bitcoin (BTC) Path To $30,000

6 days ago

Premium Partners

Play Finance

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
mBit

mBit

Review · Visit

Press Releases

  • Arbitrum (ARB), Toncoin (TON), and Tradecurve Markets...

    3 hours ago
  • Top Meme and Utility Tokens to Watch Out For in 2023...

    3 hours ago
  • Bitcoin Miners Go Bankrupt As Bitcoin Spark Looks To...

    3 hours ago
  • Massive Potential Unveiled: Hedera, dYdX, Kangamoon, Poised...

    3 hours ago
  • Uwerx’s Recovery Blueprint Ignites Momentum With The...

    5 hours ago

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2023 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
    • Gambling
      • Crypto Casinos
      • Real Money Casinos
    • Casinos not on Gamstop
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play Games
  • Win 8.88 BTC
  • Play Casino Games
  • Play Finance

© 2023 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.