Julian Bittel reported that the Bollinger Bands indicator is now in a very narrow range by historical standards. According to him, in the entire history of the market, such a compression of the weekly Bollinger bands has been observed only twice: in April 2016 and July 2023.
"Bollinger bands" is one of the main indicators of cryptocurrency volatility. It provides traders and investors with information about the strength of price trends in the market. On weekly charts, the gap between the upper and lower bands is extremely rare to be so narrow, and historically such a situation has turned into good news for bulls, the expert stressed.
"In both previous cases, bitcoin prices rose significantly over the next twelve months. A similar move this time could bring bitcoin into the range of $140,000 to $190,000," Bittel said.
Recall that this is not the first time that the indicator shows a significant growth potential of the first cryptocurrency in the current bull market. At the end of 2023, the compression of the Bollinger bands preceded the growth of the asset to local highs shortly before the launch of spot ETFs for bitcoin in the United States.
Earlier, the former director of Blockstream and CEO of Jan3, Samson Mow, said that bitcoin is able to reach the $1 million mark, despite the recent decline.