Bitcoin price sideways for so long, crypto analysts are watching the Bollinger Bands closely

With Bitcoin price trading going sideways for too long and volatility falling to such an abnormally low level, cryptocurrency analysts are closely monitoring the Bollinger Bands.

bitcoin-price-sideways-for-so-long-crypto-analysts-are-watching-the-bollinger-bands-closely

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price holds nine consecutive days on the average BB, and the Bollinger bands continue the contract

Bitcoin has spent more than 75 days finally consolidating below the most important resistance level ever. The fact that Bitcoin has not been anything special in recent times has shaken traders or, as we have seen, they are moving to altcoins. Altcoin everywhere is on the rise, with a few new high price record-setting all time. In it, as AZCoin News reported, Cardano price has increased by about 200% since the beginning of 2020. And from the March low, the ADA is even more robust, around 800%.

But because things have become so stagnant with Bitcoin, cryptocurrency analysts have had to dig deep into the technical analysis tool Bollinger Bands. This is consists of a moving average and two standard deviations, acting as the upper and lower “bands.” As much as 90% of price action takes place within the bands. Reversals also take place when the price reaches the top or bottom, giving them a band-like effect.

The bands widen and contract depending on volatility. And because the notoriously volatile asset is so lacking in volatility lately, voluntary are repeated instances where the bands have tightened this much to make sense out of what to expect next. Data shows that the bands have signed to historic lows – lows that often trigger an explosive move. After yesterday’s robust rebound from low $ 9000s, it has even caused the creator of the Bollinger Bands to speak up about Bitcoin.

According to John Bollinger, after a strong bounce yesterday at the midline on the Bollinger Bands on the daily price chart of BTC/USD. Bitcoin price has now held nine daily candlesticks in a row closing on the midline. Price action is currently in the tenth consecutive day trial process.

Bollinger’s comment is likely related to this fact. The price of an asset that falls in the middle of the Bollinger Bands can act as a sell or short signal.

On the mid lane, the opposite is true. The support level for nine daily candles shows that it’s time for Bitcoin to test the upper band, or it may be the final value before plummeting.

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Bitcoin BTC/USD Bollinger Bands Daily | Source: TradingView

Other times, Bollinger has appeared, telling the public about the time to pay attention, which is often an explosive move. And although that was not his comment during this period, due to how tight the Bollinger Bands were and with a lot of mid lane tests, it was time to pay attention to BTC/USD.

You can also check Bitcoin Price here.

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