Bitcoin (BTC) Hits Bollinger Bands Bottom: Is a Bull Run Near
U.Today - As the week comes to a close, the market returns to one of the most watched technicals: Bitcoin's weekly close. This not only shuts down the entire seven-day market variation but also serves as a basis for predicting upcoming variations. Will it continue, decline or kick off a whole new phase? It all depends on the final forum variation of the tree.
For more insight, they must rely on the Bollinger Bands indicator, which has proven its worth in identifying important price zones.
Bollinger Bands are more than just a simple indicator. Think of them as a dynamic border, constantly adjusting to price movements. The middle acts as a moving average, with the two outer ranges expanding and thus optionally contracting into volatility. This is a powerful tool that helps traders identify when any price may have gone too far in one direction.
For the second week in a row, Bitcoin (BTC) has been trading around the lower range of the Bollinger Bands. While the price has not broken below the lower range, it has bounced from it twice in a row. This is not a random phenomenon.
Typically, when the price holds in the lower range and does not fall further, it can be a sign that a temporary level is forming. Selling pressure is waning, while buyers are starting to return to the market. If this trend continues, traders should pay attention to the middle range, which is currently around $94,300, about 11.25% above the current price.
However, it should be noted that weekly time frames move slowly and do not usually generate strong signals right away. Therefore, this is not a short-term call to action. Instead, it is seen that Bitcoin could establish a solid foundation for greater upside in the future.
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