Affected by presidential candidate Trump's vigorous appeal, Bitcoin once exceeded US$70,000 earlier this week, but soon plummeted to US$66,000. Today, it once fell to US$63,584, and currently rebounded briefly to US$64,442.
Bollinger Bands reach narrowest point in a year
While Bitcoin is currently still in a downtrend, a key technical indicator suggests significant price swings are possible. Cryptocurrency trader and analyst Matthew Hyland said in an analysis video on the 31st of last month:
Bitcoin's Bollinger Bands have reached the "third narrowest point" since its inception in January 2009 on the weekly chart.
Not only Matthew Hyland observed this trend, cryptocurrency trader MaxBecauseBTC also tweeted today:
On the Bitcoin weekly time frame, the Bollinger Bands have only been this narrow twice in history…in April 2016 and August 2023.
Kristoph Jeffers, chief operating officer of Three Jay Partners, also tweeted :
I feel crazy! Weekly Bollinger Bands are narrower than daily Bollinger Bands, and strong moves are expected soon, whether up or down.
Bitcoin consolidation could end ‘within a month’
On the other hand, Hyland said in the video that the long-term consolidation since March 13 is about to end, and he believes that Bitcoin may experience huge fluctuations within one month.
Hyland further explained that these bands show a similar pattern to July 2023, when Bitcoin surged 20% in four months, and while it may take a few weeks, he believes Bitcoin is very close to an “explosive move”:
The Bollinger Bands weekly reached its narrowest point in late July last year and the same pattern is seen again.
However , MaxBecauseBTC also reminded that Bitcoin started a bull market after the Bollinger Band narrowed in April 2016, and after the Bollinger Band narrowed in August 2023, although it showed subsequent gains, there was also a 20% drop in the middle. of collapse. The moving zone also reminds readers that prices may face huge fluctuations in the future, so please bear in mind the risk of price fluctuations.
