Bitcoin has been trading within a tight range for weeks now and that has caused the Bollinger Bands on the daily timeframe to be the tightest since January 2023. Bollinger Bands are a technical analysis tool that uses moving averages and standard deviations, showing that when the bands are tight, it means that the asset’s price is trading in a narrow range and volatility is likely to follow. This tightening of the Bands usually results in a price move.

An example of this was seen in early January, when the bands were even more narrow and resulted in a 40% rise of the asset’s price. It is unknown which direction the upcoming breakout will take, however, it is expected to be a significant one. If the breakout is bearish, then Bitcoin may potentially dip back down to $20,000 or even lower. On the other hand, if it is bullish, then BTCUSD could see its price rise to above $30,000 and potentially reaching $40,000 within several weeks if the trend continues.

Therefore, those traders and investors who are interested in unleashing the potential of this upcoming breakout must consider strategies to engage in. To gain more insight and education into the cryptocurrency markets, traders and investors alike can follow Twitter accounts such as TonyTheBull’s “@tonythebullBTC”, as well as “@coinchartist_io”, or even join the TonyTradesBTC Telegram group for exclusive daily market insight and technical analysis. It is important to remember, however, that the content is educational and should not be considered as financial advice.



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