Bitcoin’s Weekly Bollinger Bands Hit Record Tightness, Where to Next For BTC?
“Bitcoin’s weekly Bollinger Bands recently hit record tightness,” reported chartered market technician Tony Severino on Wednesday.
For now, the cryptocurrency has failed to break out above the upper band with strength, despite reaching an all-time high of $126,000 earlier this week.
According to past local consolidation ranges, “it could take as long as a hundred days to get a valid breakout (or breakdown, if BTC dumps instead),” he said.
Bollinger Bands are a technical analysis tool used to measure market volatility and identify potential overbought or oversold conditions in assets.
Potential to Go Parabolic
The analyst added that expanding from a squeeze setup like this can lead to “head fakes,” which we might have seen with the latest move.
“We also might see another head fake down from here before eventually taking off higher,” he said before adding:
“This has the potential to send Bitcoin parabolic, or put an end to the three-year mature bull rally.”
Chief strategist at Satsuma Technology, Mark Moss, said that Bitcoin breaking out to new peaks still doesn’t look anywhere near cycle peaks, “while external fundamentals are looking hot.”
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“Unlike 2021, the Fed is not tightening; they are loosening, ETFs and BTC [treasury companies] are creating the greatest demand shock, and the world has woken up to the ‘debasement trade’.”
Uptober Still On Track
Despite today’s 2.5% pullback to the $121,000 level, Bitcoin’s ‘Uptober’ is still on track with the asset up 7% so far this month. BTC has gained in 10 of the past 12 Octobers and 8 of the past 12 fourth quarters, according to Coinglass.
Meanwhile, analyst ‘Sykodelic’ is one of many who claim that the four-year cycle is no more. “The clear fact here is that Bitcoin has a fairly large area in which to expand before it would recent the end of its price cycle,” he said on Wednesday.
“I would not be surprised if Bitcoin will NOT drop below $100k again, as we see $100k resistance turn into $100k support,” said Stock-to-Flow model creator ‘Plan B’.
The September close was the fifth month in a row in six figures, and the same happened with $10, $100, $1,000, and $10,000, he added.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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