Bitcoin (BTC) could see fresh upside volatility as BTC price strength revisits key levels, a classic metric suggests.
In an X post on Sep. 18, John Bollinger, creator of the Bollinger Bands volatility indicator, said that Bitcoin was positioned for a breakout decision.
After hitting new September highs the day prior, Bitcoin is challenging resistance levels out of reach since mid-August, data from Cointelegraph Markets Pro and TradingView shows.
For Bollinger, the signs from the largest cryptocurrency are encouraging. Bollinger Bands use standard deviation around a simple moving average to determine both likely price ranges and volatility.
Currently, BTC/USD is putting in daily candles which touch the upper band. When this happens, it can signal an imminet reversal back to the center band, or conversely an inbound fit of upside volatility.
Narrow Bollinger Bands seen on Bitcoin recently lend weight to hopes that the latter scenario will now play out.
“And there is the first tag of the upper Bollinger Band after a new set of controlling bars was established at the lower band,” Bollinger commented alongside a chart.
Cointelegraph reported on the narrowing of the bands in July — an event which ultimately preceded a return to lower levels.
Bollinger characterizes the current mood among seasoned Bitcoin traders and analysts on short timeframes.
Related: FOMC versus BTC price ‘local bottom’ — 5 things to know in Bitcoin this week
Despite the strength seen this week, caution abounds as various trendlines, which previously acted as support remain above spot price.
Discussing the situation, on-chain monitoring resource Material Indicators told X subscribers to question bulls’ momentum.
“We have heavy technical resistance overhead at the
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