Bitcoin Bollinger Bands hit key zone as BTC price fights for $27K

Bitcoin (BTC) could spot caller upside volatility arsenic BTC terms spot revisits cardinal levels, a classical metric suggests.

In an X post connected Sep. 18, John Bollinger, creator of the Bollinger Bands volatility indicator, said that Bitcoin was positioned for a breakout decision.

Bitcoin Bollinger Bands oculus commencement of "walk up"

After hitting caller September highs the time prior, Bitcoin is challenging absorption levels retired of scope since mid-August, information from Cointelegraph Markets Pro and TradingView shows.

For Bollinger, the signs from the largest cryptocurrency are encouraging. Bollinger Bands usage modular deviation astir a elemental moving mean to find some apt terms ranges and volatility.

Currently, BTC/USD is putting successful regular candles which interaction the precocious band. When this happens, it tin awesome an imminet reversal backmost to the halfway band, oregon conversely an inbound acceptable of upside volatility.

Narrow Bollinger Bands seen connected Bitcoin precocious lend value to hopes that the second script volition present play out.

“And determination is the archetypal tag of the precocious Bollinger Band aft a caller acceptable of controlling bars was established astatine the little band,” Bollinger commented alongside a chart.

“The question is present tin we bash a locomotion up the precocious band? Too aboriginal to answer.”

BTC/USD 1-day illustration with Bollinger Bands. Source: TradingView

Cointelegraph reported connected the narrowing of the bands successful July — an lawsuit which yet preceded a instrumentality to little levels.

BTC terms reset "quite reasonable"

Bollinger characterizes the existent temper among seasoned Bitcoin traders and analysts connected abbreviated timeframes.

Related: FOMC versus BTC terms ‘local bottom’ — 5 things to cognize successful Bitcoin this week

Despite the spot seen this week, caution abounds arsenic assorted trendlines, which antecedently acted arsenic enactment remain supra spot price.

Discussing the situation, on-chain monitoring assets Material Indicators told X subscribers to question bulls’ momentum.

“We person dense method absorption overhead astatine the Key Moving Averages and enactment astatine the LL,” portion of commentary stated.

“It's rather imaginable that we circular travel the range, and with immoderate luck, we volition spot legit tests of the R/S levels that volition springiness america immoderate clarity connected wherever BTC goes from present earlier the extremity of the week.”

Material Indicators referenced the upcoming United States Federal Reserve determination connected involvement rates, which could nutrient drawback volatility and untrustworthy short-term trading signals.

— Material Indicators (@MI_Algos) September 18, 2023

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.