- The analyst notes that the Bollinger band suggests increased BTC volatility in the short term.
- Bitcoin trades around the $30,000 region, suggesting the possibility of a bullish breakout.
Bitcoin is entering a period of increased volatility, according to a new analysis by crypto media outlet Coin Bureau. In a recent video, the YouTube channel’s host, Guy Turner acknowledged that the cryptocurrency’s current setup suggests an impending significant move. According to him, the Bitcoin price would move significantly higher or lower as soon as it breaks out of the current Bollinger band squeeze.
Turner’s initial projection comes from the Bollinger bands’ behavior on the daily chart. Turner further confirmed his forecast using the lower time frame charts in the four-hour and the one-hour charts.
The Bollinger bands indicator on both charts replicated a similar behavior, as seen on the higher timeframe. However, Turner noted that the prolonged sideways movement of the Bitcoin price is good for altcoins. According to him, the logic behind altcoins performing well when BTC trades sideways revolves around investors’ pursuit of large gains during periods when Bitcoin is slow.
Despite this logic, the altcoin market has remained calm, with limited volatility, except for a few coins. Turner believes that ETH’s weakness against BTC plays a role in the low volatility among altcoins. He noted that ETH saw its first monthly close against BTC below the key Bollinger bands moving average. According to Turner, that moving average served as support during the bull market but has now been broken.
Additionally, Turner observed a weakening correlation between the cryptocurrency and stock markets, which is at its lowest level in almost two years. In his view, that makes it harder to forecast the outcome of the cryptocurrency market.
Bitcoin crossed $30,000 for the first time this year after breaking through a local high at $29,380, established on March 24, 2023. By reaching $30,575, the flagship cryptocurrency gained over 85% from its starting price this year. As of the time of writing, Bitcoin exchanged for $30,257, according to data from TradingView, with a bullish momentum that looks to push prices higher.
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