Bollinger Band Creator Predicts an Explosion in the Price of Bitcoin

Home » Bitcoin » Bollinger Band Creator Predicts an Explosion in the Price of Bitcoin
January 24, 2020 by
Bollinger Band Creator Predicts an Explosion in the Price of Bitcoin

The Bollinger band is one of the leading indicators when it comes to cryptocurrency trading. A lot of traders use the patterns formed by this indicator to predict market behaviours in order to make the most of the changes in price. Therefore, when the creator of this powerful indicator makes a pronouncement about the markets, he deserves to be taken seriously.

According to John Bollinger, the recent pullback of Bitcoin price has introduced it into a region of significant support. On his twitter handle, Bollinger described the region as an area of ‘logical support’ for the world’s leading cryptocurrency.

Bollinger Band Measures Volatility

Although this prediction suggests a possible bounce that will see Bitcoin experience a significant upside movement, it is expedient to fully understand how to interpret the bollinger bands. It is also important to find a correlation with other supporting indicators in order to be sure of which direction the market will go.

The Bollinger bands understudies market volatility and forms patterns of pictorial representation. The current situation and pattern formed by the Bollinger bands reveal the diminishing volatility level in the market. It looks as if the cryptocurrency market is taking a breather before embarking on another significant move.

Another crypto analyst on Twitter noted that Bitcoin is experiencing its least moment of volatility in almost a year. By implication, he believes that this is a sign of an impending big move.

All is Set For Another Price Explosion

Analysing the cryptocurrency market involves the investigation of various elements at the same time. It is the combination of chart formations, price action, trade volumes and various other indicators that make up the systems that are used by traders. Even after employing these tools, real time events surrounding the market also play a role in determining which direction price may take.

At the moment, it is relatively quiet out there and the traditional volatility of the cryptocurrency market seems to have faded. According to experts, this is just a preparation for an imminent explosive move. The direction of this movement is what is yet to be uniformly agreed.

A compression around the Bollinger band sets up the charts for an eventual breakout. If you are a trader of Bitcoin, this is the time to pay close attention to the charts and other indicators that you may have in your toolbox.

According to Bollinger, Bitcoin currently rests on a ‘logical support’. A confirmed bounce off this level could see the cryptocurrency aim for new highs in 2020. Otherwise, there could be another significant dip to lower levels as the market prepares for the third halving event which comes up later in May.

Click HERE to buy Bitcoin and other cryptocurrencies on Coinstituency

Leave a Reply

Your email address will not be published. Required fields are marked *

© Copyright 2018 Coinstituency. Risk Disclosure: Coinstituency will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Cryptocurrency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite. Coinstituency would like to remind you that the data contained in this website is not necessarily real-time nor accurate, meaning prices are indicative and not appropriate for trading purposes. Therefore Coinstituency doesn’t bear any responsibility for any trading losses you might incur as a result of using this data. Coinstituency may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.