Bitcoin Monthly Tags Lower Bollinger Band, Tool’s Creator Hints At Bottom
June 27 2022 - 5:11PM
NEWSBTC
Bitcoin price action on monthly timeframes has made a historic move
to the touch the lower Bollinger Band – a popular technical
indicator and volatility measuring tool. Although he warns there
isn’t yet a sign that a bottom is in, the tool’s creator says where
price action tapped is a “logical” level for such a bottom to
occur. Unprecedented Bitcoin Price Action Taps Monthly Bollinger
Band For First Time In History Expectations for Bitcoin price in
2022 were closer to $100,000 per coin and above. Yet the top
cryptocurrency today is trading close to its former 2017 all-time
high at $20,000. But unprecedented macro conditions has caused
unprecedented price action in Bitcoin and other cryptocurrencies.
Never in the past has the top cryptocurrency by market cap retested
its former all-time high this way. Related Reading | Bitcoin Weekly
RSI Sets Record For Most Oversold In History, What Comes Next? And
never did Bitcoin price on monthly timeframes ever reach the lower
Bollinger Band. But that’s exactly what happened this past month
when crypto market contagion spread and brought asset prices down
considerably. BTCUSD monthly touches down on the lower Bollinger
Band | Source: BTCUSD on TradingView.com Touching the lower
Bollinger Band, however, could be a logical place for a bottom
according to the tool’s creator. Time To Pay Attention: John
Bollinger Points Out Logical Level For Potential Bottom The
Bollinger Bands are a technical analysis tool that can help to
measure and predict volatility, or find areas of potential
resistance and support. It was created in the 1980s by John
Bollinger, who today is a frequent Bitcoin speculator. It relies on
a 20-period simple moving average and a dynamic upper and lower
band set each at two standard deviations. Mr. Bollinger pointed out
the touch of the lower Bollinger Band in a new tweet, where he
suggests the area would be a “logical” level to bottom. Bollinger
did warn, however, that there still aren’t signs of such bottoming
yet. In the past, Bollinger was able to call out the April 2021
peak by spotting a “three pushes to a high” bearish reversal
pattern with striking accuracy. The analyst says his tools later
confirmed what he says was an “M-type” double top. Picture perfect
double (M-type) top in BTCUSD on the monthly chart complete with
confirmation by BandWidth and %b leads to a tag of the lower
Bollinger Band. No sign of one yet, but this would be a logical
place to put in a bottom.https://t.co/KsDyQsCO1F — John Bollinger
(@bbands) June 27, 2022 Bollinger also shared in his chart a look
at ancillary indicator, B%, which also has set historical lows.
Monthly Bollinger Band Width can be used to measure volatility, and
still has room to fall compared to past cycles. Related Reading |
Is Bitcoin Like Buying Google Early? Check Out The Shocking
Comparison Does Bitcoin price have more room to fall also? Or will
a bottom form in this “logical” zone as the tool’s creator calls
attention to? Either way, it seems to be “time to pay attention.”
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education. Please note: Content is educational and should not
be considered investment advice. Featured image from
iStockPhoto, Charts from TradingView.com
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