Bitcoin Poised for Potential Breakout Amid Increased Volatility, Warns Bollinger Bands Indicator
Summary:
Bitcoin could experience an uptick in volatility according to the Bollinger Bands volatility indicator. This follows Bitcoin's recent unprecedented September highs, causing excitement among experienced traders. However, investors are urged to exercise caution due to potential hurdles, including looming trendlines and the upcoming U.S Federal Reserve's decision on interest rates.
A resurgence in Bitcoin's (BTC) price strength may result in an upswing in volatility, as revealed by a popular metric. John Bollinger, the brain behind Bollinger Bands volatility indicator, suggested in a Sep. 18 post that Bitcoin is primed for a decisive breakout. After experiencing September highs a day earlier, Bitcoin is battling resistance levels unseen since mid-August, according to data from Cointelegraph Markets Pro and TradingView.
For Bitcoin's biggest fans, such as Bollinger himself, the most popular cryptocurrency's performance holds promise. Bollinger Bands leverage standard deviation around a simple moving average to determine likely price brackets and volatility levels. At present, daily BTC/USD trades are nudging the upper band. This may prophesy a swift regression to the middle band or, alternatively, an incoming wave of positive volatility.
Bollinger's optimistic take on Bitcoin is shared by experienced traders and analysts who monitor Bitcoin closely in real-time. Despite Bitcoin's solid performance this week, caution is advised due to multiple existing trendlines, previously known as support, hovering above the current price.
On-chain market analysis service Material Indicators urged subscribers to scrutinize the bullish momentum, citing "heavy technical resistance" at the Key Moving Averages and support at the LL.The upcoming decision on interest rates by the United States Federal Reserve potentially leading to unanticipated volatility and deceptive short-term trade signals adds to the uncertainty.
Reminder: The contents of this article should not be considered as financial advice or recommendations. Every investment and trade operation bears a level of risk. It's essential for readers to undertake their own research before making any financial decisions.
Published At
9/19/2023 8:38:06 AM
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