Bitcoin’s Weekly Bollinger Bands Hit Record Tightness, Where to Next For BTC?
“Bitcoin’s weekly Bollinger Bands not too long ago hit report tightness,” reported chartered market technician Tony Severino on Wednesday.
For now, the cryptocurrency has failed to get away above the higher band with power, regardless of reaching an all-time high of $126,000 earlier this week.
According to previous native consolidation ranges, “it may take so long as 100 days to get a sound breakout (or breakdown, if BTC dumps as a substitute),” he mentioned.
Bollinger Bands are a technical evaluation software used to measure market volatility and determine potential overbought or oversold situations in belongings.
Potential to Go Parabolic
The analyst added that increasing from a squeeze setup like this may lead to “head fakes,” which we’d have seen with the newest transfer.
“We additionally would possibly see one other head faux down from right here earlier than ultimately taking off greater,” he said earlier than including:
“This has the potential to ship Bitcoin parabolic, or put an finish to the three-year mature bull rally.”
Chief strategist at Satsuma Technology, Mark Moss, said that Bitcoin breaking out to new peaks nonetheless doesn’t look wherever close to cycle peaks, “whereas exterior fundamentals are wanting sizzling.”
“Unlike 2021, the Fed isn’t tightening; they’re loosening, ETFs and BTC [treasury companies] are creating the best demand shock, and the world has woken up to the ‘debasement commerce’.”
Uptober Still On Track
Despite as we speak’s 2.5% pullback to the $121,000 stage, Bitcoin’s ‘Uptober’ is still on track with the asset up 7% to this point this month. BTC has gained in 10 of the previous 12 Octobers and eight of the previous 12 fourth quarters, in accordance to Coinglass.
Meanwhile, analyst ‘Sykodelic’ is one in every of many who declare that the four-year cycle is not any extra. “The clear reality right here is that Bitcoin has a pretty big space by which to expand earlier than it will current the top of its worth cycle,” he said on Wednesday.
“I’d not be stunned if Bitcoin will NOT drop beneath $100k once more, as we see $100k resistance flip into $100k assist,” said Stock-to-Flow mannequin creator ‘Plan B’.
The September shut was the fifth month in a row in six figures, and the identical occurred with $10, $100, $1,000, and $10,000, he added.
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