Bitcoin’s price is often predicated on major volatile moves, both up and down. Recently, however, the price has been trading sideways for almost a month in a rather tight range which could be a sign that a big move is coming. Adding to the mix the Bollinger bands, which are currently closing to each other, we could actually be in for a significant price movement sooner rather than later.Bitcoin’s Current Sideways ActionThe price of the largest cryptocurrency has been within a fairly close range between 00 and 00 since the end of September. However, over the last 10 days, it has been relatively steady with a short movement upwards yesterday. History teaches us that when Bitcoin’s price remains in a close range for a notable period of time, a severe movement is to be expected.Back in
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Bitcoin’s price is often predicated on major volatile moves, both up and down. Recently, however, the price has been trading sideways for almost a month in a rather tight range which could be a sign that a big move is coming. Adding to the mix the Bollinger bands, which are currently closing to each other, we could actually be in for a significant price movement sooner rather than later.
Bitcoin’s Current Sideways Action
The price of the largest cryptocurrency has been within a fairly close range between $8600 and $7800 since the end of September. However, over the last 10 days, it has been relatively steady with a short movement upwards yesterday. History teaches us that when Bitcoin’s price remains in a close range for a notable period of time, a severe movement is to be expected.
Back in the middle of September, Bitcoin faced a similar trajectory when it was trading around $10,300 for a while. As CryptoPotato reported, the price plunged by more than $2000 in just a few days. It’s worth pointing out that there is another correlation between now and then – the Bollinger bands.
They are an indicator showing most of the price action of an asset, based on its standard deviation and a moving average. While they don’t provide an exact prediction on where the price may be heading, the bands show that the volatility is contracting and we could be in for expansion.
$BTC Bollinger Bands squeezing!
Note that narrowing bands do not provide any directional clues. They simply infer that volatility is contracting and should be prepared for a volatility expansion, which means a directional move.
Which way will it go?
Watch Out!! pic.twitter.com/xpbzpO0UFk
— Faisal Sohail ?️? (@oddgems) October 22, 2019
Bitcoin’s Current Situation
Bitcoin’s price is at $8250 at the time of this writing with a total market capitalization of $148,513,000,000. The trading volume has been declining after the monthly high of $21 billion on the 10th of October and it’s now at $16 billion. During the aforementioned price plunge in September, the volume picked up to $29 billion after roaming steadily under $15 billion for a few days.
Looking at the technical charts, Bitcoin’s first resistance lies at $8300. The most interesting level would be at around $9000 as it’s a psychological seller point and the 200-days moving average line. If bears come to town, resistance levels are at $8000 and $7700 with the later tested successfully a few times already this month.
Bitcoin’s total market capitalization dominance stands at 66.7% as of now, with a yearly low at 50% in March and a high of 71% in September.
It’s hard to say whether the price will go up or down but if history and the Bollinger bands are solid indicators, we can expect a serious move coming forward.