Bitcoin, the leading cryptocurrency, has rebounded this week, rising above $65,000. While this recovery is a lifeline for investors, according to an indicator, the BTC price may experience a big explosion.
A new analysis by Julien Bittel, head of macro research at financial advisory firm Global Macro Investor, shows that the BTC price could rise as high as $190,000.
At this point, the analyst who analyzed the Bollinger Bands said that the Bollinger Bands have narrowed and indicate that volatility will increase in BTC in the near future.
According to the analyst, if history repeats itself, Bitcoin will have the fuel to reach all-time highs of six figures and the Bitcoin price could rise to the $140,000 to $190,000 range.
In other words, according to the analyst, Bollinger Bands have narrowed and signal high volatility. This may be a sign that Bitcoin may rise further.
Pointing out that historically it is rare for Bollinger bands to be this narrow on the weekly chart, the analyst said that this is always good news for bulls.
“Bitcoin Bollinger Bands are quite tight and narrow according to historical data.
We have only seen weekly Bollinger Bands compressed this much in two months in history: April 2016 and July 2023.
Both previous times, Bitcoin prices rose significantly in the twelve months following the month of this squeeze.
If history repeats itself this time for BTC, the Bitcoin price may rise to the range of $140,000 to $190,000.
Granted, crypto markets were pretty sluggish in the second quarter, but now is not the time to get complacent.
This is the Boring Zone…
Next up is the Banana Zone…”
The banana region is generally known as the region where Bitcoin and cryptocurrency prices are on the rise.
#Bitcoin Bollinger Bands are crazy tight by historical standards.
Only two other months in history have we seen the weekly Bollinger Bands so compressed: April 2016 and July 2023.
During both of the previous episodes, Bitcoin prices rose significantly over the following twelve… pic.twitter.com/hBb8d73SGc
— Julien Bittel, CFA (@BittelJulien) July 19, 2024
*This is not investment advice.
