The end of Bitcoin’s June month candle signaled that the second quarter and first half of 2018 had come to an end. The most popular cryptocurrency experienced its biggest quarterly decline since 2011 but still held higher than a crucial support level.
We take a look at BTCUSD’s current quarterly support level and the way it has held steady in the past.
Bitcoin Crash To Level Bear Markets’ Bottom
In 2018, the primary story that offered hope for bagholders was that the majority of institutions would get into Bitcoin. It would be all the difference. Many of these institutions were at risk of going bankrupt, but they did eventually find their way into cryptocurrency.
The larger institutions tend to be more cautious about taking positions per quarter. Institutions could also consider regaining their crypto investments if they have had two poor quarters.
Related Reading| Bitcoin Monthly Tags Lower Bollinger Band, Tool’s Creator Hints At Bottom
The recent selloff took Bitcoin price a lot lower than many would have expected – to the tune of more than 50%, making it the worst quarterly close in a decade. The middle-Bollinger Band was also hit.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
How to Read the Bollinger Bands and What’s Next
John Bollinger developed the Bollinger Bands as a way to gauge volatility in the 1980s. The middle-Bollinger Band, which is 20-period in duration, has the upper and lower bands at two standard deviations.
Statistics show that most price movement occurs in the upper and lowest bands. A sell or buy signal is when the SMA crosses above or below it.
This SMA has been the same for every bear market since 2016, 2017, and again in 2020. Bitcoin prices touched it again for the second quarter.
Source = BTCUSD at TradingView.com| Source: BTCUSD on TradingView.com
The SMA could be broken, which would mark a new milestone in Bitcoin history. Bitcoin is doing incredible things in recent times. This tool, for example, shows how the Bollinger Band lower was touched on monthly time frames.
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The theory is that price can be considered low in relation to its history if it is at the lower ends of the bands. However, the reverse is true if an asset touches the upper bands. This means that Bitcoin’s price could be at its lowest ever point relative to the monthly and quarterly price movements.
This could indicate a rapid recovery or Bitcoin losing the SMA, which would be a much more devastating outcome.
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Featured image taken from iStockPhoto. Charts taken from TradingView.com
