Bitcoin’s Bollinger Bands show record compression, which analysts say signals major volatility is ahead.
A key technical indicator for Bitcoin has squeezed to its tightest ever level amid low volatility, which analysts say usually precedes a large breakout and volatility spike.“When volatility compresses this tightly, expansion always follows,” they said.
“Once expansion starts, price almost always tests the outer bands rather quickly.” Nassar Achkar, chief strategy officer at the CoinW exchange, told Cointelegraph that the Bollinger Bands’ tight compression “signals the calm before a significant volatility storm.” “While a final September shakeout toward $100,000 is possible, the convergence of negative funding rates, strong seasonal trends, and institutional exchange-traded fund inflows tilts the odds heavily toward a bullish surge upward.”“This is not a signal, this is not an unexpected structure, this is simply an observation without any real predictive value,” they said. Days later, Bitcoin saw a surge in volatility and a significant upside breakout, propelling BTC to its first all-time high over $122,000 by July 14. The technical indicator tightened up again in early September, reaching its most extreme level on the monthly time frame since BTC began trading.about which direction Bitcoin will next move as it enters October, which traders typically see as a major breakout month for Bitcoin, dubbed “Uptober.”that Bitcoin “needs more time to correct” and “continue to work off overbought readings” after its huge gains this year., noting that Bitcoin has gained in 10 out of the past 12 Octobers and eight out of the past 12 fourth quarters.Bitcoin whales offload 147K BTC in one month: Is $100K BTC price next?
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