Bitcoin has been trading within a narrow range between $29,800 and $31,300 since June 23, with attempts to break out failing quickly. However, the Bollinger Bands, a technical indicator created by trader John Bollinger, suggest that this period of calm may soon come to an end.
The bands consist of three lines on a price chart and measure market volatility, with a squeeze indicating a potential for a significant price movement. Currently, the 20-day Bollinger Bands are experiencing an extreme squeeze, with a mere 4.2% price range separating the upper and lower bands, creating mounting pressure in the Bitcoin market.
All Comments