In this episode of NewsBTC’s daily technical analysis videos, we look at the latest move up in Bitcoin price using the Bollinger Bands across a variety of timeframes and explain why a close above the upper band could lead to a larger move to the upside.
Have a look below at the video.
VIDEO: Bitcoin Price Analysis – October 4, 2022
It’s back!
A rounded bottom is the second-half of an Adam and Eve double top formation. The same pattern as the 2018 bear market bottom, it is described by a V-shaped correction that is followed up with a slow rounded bottom.
Another bear market bottom is it?Source: BTCUSD tradingview.com | Source: BTCUSD on TradingView.com
Crypto Market Gets Ready To Go With The Bands
Bitcoin’s latest move up is particularly notable due to the daily close taking place outside of the upper Bollinger Band. It can cause a rejection of Bitcoin back towards the middle-BB as can be seen from the previous time it happened. If you hold above this level, it could mean a greater move towards the upside.
Expansions in volatility are most important and worth paying attention to, as the tool’s creator would probably say himself. When the Bollinger Bands squeeze, it is a sign of low volatility – a short-lived phase that always ends with a bang and large move.
Closing today’s daily above around $20,350 should do the trick and keep Bitcoin above the upper band. The middle band at $19,000. If that fails, then the next logical target will be the upper-band.
Monthly Bollinger Bands Offer Two Targets
This bear market saw the monthly Bollinger Bands tapped for first time ever in Bitcoin history. This indicates that Bitcoin prices are extremely low compared to historical monthly volatility and could be a sign of a potential buying opportunity.
Bitcoin is moving downward in the lower band. If Bitcoin keeps falling, it could fall to $12,000 before finding more supportive dynamic support. The target is $60,000 BTC if Bitcoin moves back towards the upper band. This setup offers decent risk-reward ratio.
If Bitcoin continues to gain momentum, it could be a confirmation of a new uptrend. The TD Sequential isn’t just helpful for finding potential turning points when the series reaches a 9 or 13, a new 1 can often signify the start of a new uptrend and is yet another important signal.
