Bitcoin’s Weekly Bollinger Bands Reach Record Density, Where Now for BTC?

A Bitcoin technical indicator has fallen to its tightest level ever as volatility subsides and the value remains range-bound despite recent spikes.

“Bitcoin’s weekly Bollinger Bands recently reached a record close,” chartered market technician Tony Severino reported on Wednesday.

For now, the cryptocurrency has failed to break above the upper band with force despite hitting an all-time high of $126,000 earlier this week.

According to previous local consolidation margins, “it could take up to 100 days for a valid breakout to occur (or a 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 a squeeze setup like this could lead to head fakes, which we may have seen with the last move.

“We may see one more head fake from here before we finally ascend higher,” he says said before adding:

“This has the potential to send Bitcoin parabolic, or end its three-year mature bull rally.”

Chief Strategist at Satsuma Technology, Mark Moss, said Bitcoin hitting new highs still doesn’t seem close to cycle peaks, “while external fundamentals look good.”

You might also like:

“Unlike 2021, the Fed is not tightening; they are easing, ETFs and BTC [treasury companies] are causing the biggest demand shock, and the world has woken up to the ‘degrading trade’.”

Still on track so far

Despite today’s 2.5% pullback to the $121,000 level, Bitcoin’s ‘Uptober’ is still on track, with its value up 7% so far this month. According to Coinglass, BTC has posted gains in 10 of the past 12 October and 8 of the past 12 fourth quarters.

Meanwhile, analyst ‘Sykodelic’ is one of many claiming that the four-year cycle no longer exists. “The clear fact here is that Bitcoin has quite a large area to expand before it would reach the end of its price cycle,” he says. said on Wednesday.

“I wouldn’t be surprised if Bitcoin does NOT fall below $100,000 again as we see $100,000 resistance turn into $100,000 support.” said Stock-to-Flow model maker ‘Plan B’.

September’s close was the fifth straight six-figure month, with the same happening at $10, $100, $1,000 and $10,000, he added.