Bitcoin (BTC) could see fresh upside volatility as BTC price strength revisits key levels, a classic metric suggests.
In an X (formerly Twitter) post on Sep. 18, John Bollinger, creator of the Bollinger Bands volatility indicator, said that Bitcoin was positioned for a breakout decision.
Bitcoin Bollinger Bands eye start of “walk up”
After hitting new September highs the day prior, Bitcoin has been challenging resistance levels out of reach since mid-August, data from Cointelegraph Markets Pro and TradingView shows.
For Bollinger, the signs from the largest cryptocurrency are encouraging. Bollinger Bands uses standard deviation around a simple moving average to determine both likely price ranges and volatility.
Currently, BTC/USD is putting in daily candles that touch the upper band. When this happens, it can signal an imminent reversal back to the center band or, conversely, an inbound fit of upside volatility.
Narrow Bollinger Bands seen on Bitcoin recently lend weight to hopes that the latter scenario will now play out.
“And there is the first tag of the upper Bollinger Band after a new set of controlling bars was established at the lower band,” Bollinger commented alongside a chart.
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