Imminent Bitcoin Price Volatility Predicted; Traders Advised to Brace for Impact
Summary:
This article discusses the prediction of imminent volatility in Bitcoin prices within the next ten days based on observation by social media trader, HornHairs, who identified an uncommon trend involving the Bollinger Bands volatility indicator. The prediction suggests a significant price movement for Bitcoin, although the direction remains uncertain. The article emphasizes the importance of strategy preparation to avoid panicking amidst unexpected price changes. It also mentions the increasing frustration due to the lack of Bitcoin’s price progress ahead of the forthcoming April block subsidy halving. It concludes with potential price forecasts and a word of caution about risks involved in trading and investing.
Anticipations of increased volatility in the price of Bitcoin (BTC) within the next ten days have been highlighted in a novel examination. The information was shared on a post on Feb. 7 by esteemed social media trader HornHairs, who pointed towards an uncommon signal amid the Bollinger Bands volatility marker. This suggests that Bitcoin might experience a significant movement in price, although the digital currency has been trading within a narrow intraday range for more than 150 days.
The Bollinger Band Width (BBW), a tool that assesses the disparity between the standard deviation bands often applied as a gauge for the Bollinger Bands volatility marker, has reached lows typically resulting in a considerable movement in BTC/USD. The current narrow widths of BBW are seldom seen, and every instance in the past has provoked a sharp squeeze on BTC price. Yet, the direction of this upcoming move remains uncertain.
HornHairs commented that a significant move on BTC's price might occur in a maximum of ten days. For either way the price swings, he advised preparing strategies now to avoid panick amidst unexpected price changes.
The Bollinger Bands indicator has frequently signalled volatility periods, indicating Bitcoin's previously infrequent narrowing bands. As per data from Cointelegraph Markets Pro and TradingView, BTC/USD is currently performing in an area between the midpoint and upper bands and the pairs are looking for a new driving force on daily timeframes.
As Cointelegraph has frequently observed, the lack of progress on BTC/USD's performance is causing increasing irritation as the block subsidy halving of April draws near. Predicted prices for BTC include exceeding $60,000 before the halving while conservative estimates also predict price discovery to happen before the end of 2024. Downward predictions, however, focus on the area with $30,000 as the base, particularly because of economic instability, especially within the regional banking sector of the United States.
It should be noted that this information does not serve as investment advice or recommendations. All trading and investing activities entail risk and thus it is essential for potential investors to conduct thorough research prior to any decision-making.
Published At
2/7/2024 6:45:00 PM
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