Bitcoin ‘explosive move’ looms as Bollinger Bands reach tightest points

Ciaran Lyons3 hours agoBitcoin ‘explosive move’ looms as Bollinger Bands reach tightest pointsA key Bitcoin trading indicator has hit its “tightest point” in a year. The last time it happened, Bitcoin pumped 20% in four months.2565 Total views6 Total sharesListen to article 0:00Markets NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksA Bitcoin indicator used by traders to assess volatility has reached its “tightest point” in 12 months in a signal that a significant price move may be underway.

“A move is almost imminent,” crypto trader and analyst Matthew Hyland said in an analysis video on July 31 while noting that Bitcoin’s (BTC) Bollinger Bands — a tool that measures the momentum and volatility of an asset within a certain range — has reached its third highest point “in its entire history” across weekly time frames since its inception in January 2009.

He wasn’t the only trader to spot the emerging pattern.

“The Bitcoin weekly time frame Bollinger Bands have only squeezed this tight 2 other times EVER.... April of 2016 & August of 2023,” crypto trader MaxBecauseBTC added.

“It’s wild to me that the Bitcoin weekly Bollinger Bands are tighter than the daily Bollinger Bands right now,” wrote Three Jay Partners chief operating officer Kristoph Jeffers on X.Bitcoin consolidation probably over “within a month”

Although Bitcoin has been consolidating within a narrow range of about 25% since March 13 — between a high of $73,679 and a brief low of $55,849 — Hyland believes this extended period of consolidation is coming to a close.

“Now it is starting to squeeze, so the moment is coming, it will probably come within a month at this point,” Hyland added.

Traders have previously echoed that the longer the consolidation, the “larger the expansion afterward.”Bitcoin is up 0.92% over the past 30 days. Source: CoinMarketCap

The prominent trader further explained that the bands are showing a pattern similar to July 2023, which led to a 20% surge in Bitcoin within the following four months.

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“Weekly Bollinger bands reached their tightest points last year at the end of July,” Hyland explained. “Seeing the same thing once again.”Bollinger Bands are tightening up just like it did in July 2023. Source: Matthew Hyland

Bitcoin surged about 20% between July and November 2023. 

If history repeats itself, Bitcoin’s current price of $63,845 could quickly turn into a new all-time high of $76,614 by November, according to CoinMarketCap data.

Hyland explained that it may take “a few more weeks,” but he believes that Bitcoin is very close to seeing “an explosive move.”

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Bitcoin Price# Bitcoin Analysis# Markets# Trading# Bitcoin TraderAdd reaction