CDS Crypto News Bitcoin Volatility Indicator Hits 12-Month High, Signaling Imminent Price Movement

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Bitcoin Volatility Indicator Hits 12-Month High, Signaling Imminent Price Movement

sevval01/08/20242 Mins read284

Bitcoin Volatility Indicator Hits 12-Month High, Signaling Imminent Price Movement

Bitcoin Volatility- Bitcoin Bollinger Bands Reach Historic Tightness: Traders Predict Major Price Shift

Bitcoin Volatility– A Bitcoin volatility indicator has just hit its tightest level in a year, signaling that a major price shift might be on the horizon.

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Matthew Hyland, a crypto trader and analyst, highlighted this in a video on July 31. He pointed out that Bitcoin’s Bollinger Bands—used to gauge an asset’s momentum and volatility—are now at their third tightest point ever in the weekly charts, a rarity since Bitcoin’s inception in January 2009.

Other traders are noticing the same trend. Crypto trader MaxBecauseBTC observed that the Bollinger Bands for Bitcoin’s weekly timeframe have only been this compressed two other times in history: in April 2016 and August 2023.

Kristoph Jeffers, COO of Three Jay Partners, remarked on X, It’s wild to me that the Bitcoin weekly Bollinger Bands are tighter than the daily Bollinger Bands right now.

Bitcoin’s Consolidation Period May Be Ending: Analysts Predict Imminent Surge

Bitcoin has been trading within a tight range of about 25% since March 13, fluctuating between a high of $73,679 and a low of $55,849. According to analyst Matthew Hyland, this extended consolidation phase is nearing its end.

Now it is starting to squeeze, so the moment is coming, it will probably come within a month at this point, Hyland said.

Traders often note that prolonged periods of consolidation are typically followed by significant price movements. Hyland observed that the current pattern in Bitcoin’s Bollinger Bands resembles the one seen in July 2023, which preceded a 20% price increase over the next four months.

From July to November 2023, Bitcoin surged by about 20%. If history repeats, the current Bitcoin price of $63,845 could potentially rise to a new all-time high of $76,614 by November, according to CoinMarketCap.

Hyland believes it may take a few more weeks, but he is confident that Bitcoin is on the brink of a major price move.

FAQs

Why is the current Bollinger Bands reading significant?

The current Bollinger Bands reading is significant because it has reached its tightest point in the last 12 months. This indicates that Bitcoin’s price is consolidating within a narrow range, which often precedes a substantial price movement.

What does it mean when the Bollinger Bands are at their tightest point?

When Bollinger Bands are at their tightest point, it means the price of Bitcoin has been stable with low volatility. This compression often signals that a significant price change—either up or down—is imminent as the market breaks out of this narrow range.

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Bitcoin Volatility

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sevval

Şevval has been actively writing since 2022 and is a third-year mathematics student at Ankara University. Her interest in writing is shaped particularly around innovative technologies such as Web3, artificial intelligence, and blockchain. She closely follows developments in these fields and aims to convey complex topics to readers in a clear and engaging manner. She enjoys combining her mathematical knowledge with technology to create content and strives to raise awareness about the digital world of the future.