Bitcoin Bollinger Bands hit key zone as BTC price fights for $27K

Bitcoin (BTC) might see recent upside volatility as BTC worth power revisits key ranges, a traditional metric suggests.

In an X (previously Twitter) post on Sep. 18, John Bollinger, creator of the Bollinger Bands volatility indicator, stated that Bitcoin was positioned for a breakout choice.

Bitcoin Bollinger Bands eye begin of “stroll up”

After hitting new September highs the day prior, Bitcoin has been difficult resistance ranges out of attain since mid-August, information from Cointelegraph Markets Pro and TradingView exhibits.

For Bollinger, the indicators from the biggest cryptocurrency are encouraging. Bollinger Bands uses standard deviation round a easy shifting common to find out each possible worth ranges and volatility.

At present, BTC/USD is placing in day by day candles that contact the higher band. When this occurs, it may sign an imminent reversal again to the middle band or, conversely, an inbound match of upside volatility.

Slender Bollinger Bands seen on Bitcoin lately lend weight to hopes that the latter situation will now play out.

“And there’s the primary tag of the higher Bollinger Band after a brand new set of controlling bars was established on the decrease band,” Bollinger commented alongside a chart.

“The query is now can we do a stroll up the higher band? Too early to reply.”

Cointelegraph reported on the narrowing of the bands in July — an occasion that in the end preceded a return to decrease ranges.

BTC worth reset “fairly cheap”

Bollinger characterizes the present temper amongst seasoned Bitcoin merchants and analysts on quick timeframes.

Associated: FOMC versus BTC price ‘local bottom’ — 5 things to know in Bitcoin this week

Regardless of the power seen this week, caution abounds as various trendlines beforehand performing as assist remain above the spot price.

Discussing the state of affairs, on-chain monitoring useful resource Materials Indicators informed X subscribers to query bulls’ momentum.

“We’ve got heavy technical resistance overhead on the Key Shifting Averages and assist on the LL,” a part of the commentary said.

“It’s fairly potential that we spherical journey the vary, and hopefully, we’ll see legit exams of the R/S ranges that can give us some readability on the place BTC goes from right here earlier than the top of the week.”

Materials Indicators referenced the upcoming United States Federal Reserve choice on rates of interest, which might produce snap volatility and untrustworthy short-term buying and selling indicators.

UPDATE 2: As famous earlier, it seems #BTC bulls are gaining some momentum, however issues are usually not at all times as they appear. Let me clarify…

Someday after final nights candle shut/open we have seen a brand new Development Precognition ⬆️sign develop on the Every day chart and NOW we’ve a brand new… pic.twitter.com/V0UI7JznKf

— Materials Indicators (@MI_Algos) September 18, 2023

This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a call.