Bollinger Bands are at historically low levels. Only in April 2016 and July 2023 have we observed this compression. In each case, over the next 12 months, Bitcoin prices increased dramatically. Bitcoin may hit $140,000 to $190,000 in less than a year if this pattern continues.
We observe a pattern of tight Bollinger Bands causing significant price movements when we analyze the data from the screenshots that were supplied. The compression seen in the first chart is comparable to that of 2016 and 2023. This implies that there might be a lot of price movement in the upcoming months.
Bitcoin saw a sharp increase in value in 2016, and after July 2023, a similar pattern was noted. These trends lend credence to the prospect of a significant price rise. Still, more factors are important than just the technical indicators.
External factors and the general mood of the market will influence the possible rise of Bitcoin. The “Boring Zone” highlighted on the chart, or a time of little price movement, typically comes before the “Banana Zone,” when volatility soars.
With the state of the market, recent fluctuations in the price of Bitcoin and past performance, it is possible that the cryptocurrency could rise to unprecedented levels. This may be the quiet before the storm despite the market’s slow performance in Q2. Bitcoin could rise to $140,000 or even $190,000 as a result of the strong price movement indicated by the tight Bollinger Bands.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
