In this episode of NewsBTC’s daily technical analysis videos, we take a look at the ongoing Bitcoin price breakout above the upper Bollinger Band on daily BTCUSD charts and provide some insight into what the next targets might be.
Have a look below at the video.
VIDEO: Bitcoin Price Analysis (BTCUSD), October 26, 2022
A significant number of shorts have already been liquidated since the breakout in crypto. What is the limit of this Bitcoin rally?
Bitcoin Rally Approaches The Middle Of Trading Range
The Bitcoin price has reached the median of a horizontal trading range. This makes it a good stopping place for profit-taking as well as to open new short positions. Another attempt to break through the median range will bring in $25K.
Importantly, Bitcoin prices are continuing to move outside the Bollinger Bands daily timeframes. The rally may have more legs after it has been tightening so much and is now expanding.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Similar Reading: Could Bitcoin bring an end to Crypto Winter? BTCUSD Analysis October 24, 2022 | BTCUSD Analysis October 24, 2022
BTCUSD Weekly Strikes Resistance at Middle Bollinger Band
Because Bitcoin’s price found resistance at the mid Bollinger Band over weekly time frames, For the event that the rally fails, I put in a short-term hedge to the resistance at the SMA 20.
We could see a complete return to the crypto bull market if there’s no rejection of Bitcoin and Bitcoin continues rising. Zooming in shows how important a weekly close higher than the middle Bollinger Band is.
Bollinger Band Width reveals that these bands are among the most tight ever. These two cases occurred prior to the bear market bottom in 2018, which saw the 50% collapse. This was before the incredible 2017 Bitcoin bull ran that made cryptocurrency popular.
It is important to note that the Bitcoin price in 2018 was below the middle-Bollinger Band while it was in 2016. This trend seems more likely to persist regardless of where the mid-BB price lies. Bitcoin bulls may be back in action if the weekly BTCUSD price chart closes above and holds the middle band.
Ichimoku: Crypto Profit Watch List
For a better understanding of the potential outcome if BTCUSD could break through the middle-BB, go back to these weekly Bollinger Bands. With $23,800 as the target, then the upper band will be next. As Bitcoin has done in daily timeframes on Bitcoin, pushing beyond the upper bands is possible due to the large amount of short-term interest.
The Ichimoku is able to replace the Bollinger Bands on the same week. This tells us much about the future. As Bitcoin prices are pushing past the Tenkan-sen the Kijun-sen (located at $32,000) is the next major resistance. The two lines are now much closer than in 2018, but it is still possible to do anything with all the energy that has been built up on the market.
Bitcoin prices pushed to the bottom of the cloud in the second bounce since the 2018 bearish market bottom. However, it made it through, then fell again on Black Thursday 2020. The rally would be stopped at $43,000 if Bitcoin price reached the peak of the cloud. Once above the cloud, all that’s left for Bitcoin is the moon.