Bollinger Bands are undoubtedly one of the most frequently used technical indicators in Bitcoin.
These bands, named after their inventor John Bollinger, are a popular technical analysis tool that shows whether the price of any financial asset is high or low.
Bollinger Bands indicate that an asset is in an overbought or oversold zone. When the price of the asset moves towards the upper band, this usually indicates overbought, when the price moves towards the lower band, this usually indicates oversold.
Evaluating the rise in Bitcoin in this context, John Bollinger, the inventor of Bollinger Bands, stated that BTC showed signs of strength.
The famous analyst stated that Bitocin moves outside the upper band of the Bollinger Bands on both the daily and weekly charts and gives an upward signal, adding that “this generally indicates that the current trend will continue.” said.
Pointing out that when the Bitcoin price moves outside these bands, this indicates a stronger market trend, John Bollinger said:
“The only thing we see in Bitcoin as of now is signs of strength, as BTC is outside the Bollinger Bands on both the daily and weekly charts.
“The last significant pattern seen in Bitcoin was a two-bar reversal in the middle Bollinger Band on November 21, increasing the strength of Bitcoin's bullish price action.”
Bitcoin, which exceeded $ 44,000 yesterday, continues to be traded at $ 43,818 at the time of writing, with a small pullback.
The air is getting a bit thin up here, but all we see as of now are signs of strength. We are outside both the daily and weekly BBs with no divergences. The last controlling formation was the 2 bar reversal at the middle BB completed on 21 Nov. $BTCUSDhttps://t.co/B4ZU3vpTvV
— John Bollinger (@bbands) December 5, 2023
*This is not investment advice.
