At the start of the week, Bitcoin (BTC) reached a new all-time high by surpassing $126,000. However, it experienced a significant drop to $121,000 as the week progressed.
With October’s bullish trend on the horizon, investors are eagerly anticipating a major upswing. An analyst has pointed out that Bitcoin is currently at a pivotal juncture.
Renowned analyst Tony Severino has been analyzing Bollinger Bands and believes that Bitcoin’s future trajectory hinges on this volatility indicator.
The Bollinger Bands suggest that within the next 100 days, BTC might either embark on an explosive upward journey or conclude its bull market phase.
The tightness of Bitcoin’s Bollinger Bands is unprecedented and indicates an impending breakout in approximately 100 days.
This could propel BTC into a steep ascent or initiate a correction that concludes its current cycle. The bands’ record constriction implies an eventual breakout in either direction; however, this may not occur immediately and could extend beyond three months.
Currently, Bitcoin hasn’t managed to decisively breach the upper band level which leaves traders in anticipation mode.
“Bitcoin’s weekly Bollinger Bands have recently tightened more than ever before.”
“So far, BTC/USD hasn’t successfully broken through from above.”
“Considering previous consolidation phases locally observed here too – seeing either valid breakouts/collapses might require over 100+ days.”
The expert cautioned about potential false breakouts due to compressed conditions within these bands:
“Emerging from such constrained settings can lead towards deceptive breakthroughs – like what happened when reaching $126k previously; another one might precede any genuine trend revelation.”
*This should not be considered financial advice.*