Technicals Lean Bullish as Massive Bitcoin Price Move Brews


Bitcoin (BTC) is about to see a massive bout of volatility, according to a long-term technical indicator. Sure, the leading cryptocurrency spiked by 42% two weeks back, surging from $7,300 to $10,500 seemingly on the news that China’s President was calling for the formal adoption of blockchain technologies. But, something bigger is purportedly brewing.

Related Reading: Despite Price Surge to $9,000, Bitcoin Not Bullish Yet: Analyst

Bitcoin Volatility on Its Way

According to a recent analysis of the one-week BTC chart by trader Mr. Anderson, a massive Bitcoin move is brewing. He noted that while it’s easy to get caught up in the “flashes of volatility” on lower time frames, a key indicator signals an even larger, extended move for the cryptocurrency market.

The indicator in question is the one-week Bollinger Band Width (BBW) indicator — an indicator that shows the width between the highest and lowest Bollinger Bands, which itself is a tool used to determine ranges.

Right now, the indicator has reached 0.42, or really long-term volatility. The last time this indicator interacted with this BBW range was in late-March — just a week before Bitcoin shot from $4,000 to $5,000 in the shocking move that kicked off this year’s micro bull market.

The BBW also was under the 0.40 range just a week or two before Bitcoin crashed in November 2018, when the previous bull run began in October 2016, and a few months prior to Bitcoin breaking past $100 for the first time ever in 2013.

In other words, a long-term Bitcoin price trend is soon to form.

Related Reading: Ethereum Price Has Potential to Surge Higher as Bitcoin Slows: Analysis

Up or Down?

Of course, this may leave you wondering — will Bitcoin continue its bull trend higher or return to a bear market state?

According to the seeming consensus of analysts, a resumption of the bull trend earlier this year is more likely than not. As reported by NewsBTC previously, Trader HornHairs has noted that he “likes the chance we hit $14,000 before $7,000.” He remarked in a recent tweet that with Bitcoin bouncing strong and holding above the one-month bullish breaker, the 0.618 Fibonacci Retracement of the entire cycle, the Point of Control as defined by the volume profile, and the yearly pivot, BTC is leaning rather bullish.

Also, trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Related Reading: Will Bitcoin Retrace to Low-$7,000s? Price Fractal Says So
Featured Image from Shutterstock

Source link


Please enter your comment!
Please enter your name here