CryptoCon, a cryptocurrency analysis company, shared its bullish views on Bitcoin price on Twitter, despite the recent drop that caused BTC to drop below $30,000.
According to CryptoCon, Bitcoin 3-Week Bollinger Bands, a technical indicator that measures the volatility and trend of the market, shows that the price has not yet peaked and could still climb to the current value of the upper band at $35,790.
The company explained that major corrections always occur after the upper parameter of the Bollinger Bands is exceeded, but not just before that. According to CrytoCon, therefore, there are no unusual developments in BTC's condition as this level has not been exceeded.
Even with the last drop in #Bitcoin price, this time is still not different for the Bitcoin 3 Week Bollinger Bands!
Large corrections have always taken place after the upper parameter is met AND exceeded, but not a moment before
The price of the upper band is still $35,790 pic.twitter.com/kQol55Ovmh
— CryptoCon (@CryptoCon_) April 29, 2023
What Are Bollinger Bands in Bitcoin Analysis?
Bollinger Bands consist of three lines: a middle line representing the simple moving average of the price, and two outer lines representing two standard deviations above and below the middle line. Bands widen when volatility increases and narrow when it decreases.
The upper and lower bands can also act as dynamic support and resistance levels for the price. When the price touches or crosses the upper band, it indicates that the market is overbought and may reverse. When it touches or crosses the lower band, it indicates that the market is oversold and may reverse.
CryptoCon's analysis shows that Bitcoin price has not yet crossed the upper band of the 3-Week Bollinger Bands, which means there is still room for growth before a major correction takes place.
*Not investment advice.