Coinspeaker Bitcoin’s ‘Crazy Tight’ Bollinger Bands Indicate Potential $190K BTC Price Target
Bitcoin could be on the verge of a significant price surge as intense volatility is anticipated, according to a new analysis. Julien Bittel, head of macro research at Global Macro Investor, suggests that BTC price could reach up to the $190,000 target.
Bollinger Bands Hint at Major Bitcoin Upside
If historical trends hold, Bitcoin might be set to achieve six-figure valuations. Bittel points out that the current state of the Bollinger Bands, a key volatility indicator, is particularly notable.
“Bollinger Bands are unusually tight,” Bittel observes, indicating that only twice before—in April 2016 and July 2023—have the weekly Bollinger Bands been so compressed. These bands gauge market volatility and the strength of price trends, and their current narrow range suggests the potential for significant price movement.
In previous instances of similar compression, Bitcoinprice increased substantially over the following year. Should this pattern repeat, Bitcoin might target a range between $140,000 and $190,000.
#Bitcoin Bollinger Bands are crazy tight by historical standards.
Only two other months in history have we seen the weekly Bollinger Bands so compressed: April 2016 and July 2023.
During both of the previous episodes, Bitcoin prices rose significantly over the following twelve… pic.twitter.com/hBb8d73SGc
— Julien Bittel, CFA (@BittelJulien) July 19, 2024
Historical Patterns and Recent Performance
This isn’t the first instance in the current market cycle where Bollinger Bands have suggested a substantial price increase. Late in 2023, a similar scenario preceded a surge to local highs just before the introduction of U.S. spot Bitcoin exchange-traded funds (ETFs).
As of July 19, Bitcoin was trading at around $64,000, up 11% over the past week. Although confidence among traders is improving and indicators point to continued bullish momentum, some skepticism remains due to the lack of mainstream retail investor participation, contrasting with the accumulation by institutions and large investors.
Trader Rekt Capital believes that September could be a critical month for Bitcoin’s potential breakout. Based on historical cycles, a significant price movement might occur in September 2024.
Bitcoin Target Bullish Sentiments from Analysts
In another analysis, Glassnode co-founder Negentropic discussed Bitcoin’s recent recovery after a 16% drop earlier in July. The cryptocurrency has since reclaimed several key support levels, including the 200-day exponential moving average (EMA) and the $62,600 level.
Negentropic maintains a bullish outlook, targeting the $69,000 to $74,000 range as the next potential price levels. He also noted that the daily relative strength index (RSI) indicates strengthening buyer interest.
Analyst Scott Melker, known as “The Wolf of All Streets”, also identified bullish signals on shorter timeframes. Furthermore, analyst Moustache pointed out a bullish cross on Bitcoin’s monthly chart, similar to the setup before the 2017 bull run.
#Bitcoin
It's been almost 8 years since $BTC last saw this bullish cross.
After that, we saw the 2017 bull run.
Do what you want with the information, I'm just saying it happened again.👀🔥 pic.twitter.com/hhImZ4f64f
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) July 18, 2024
Current Market Conditions
Despite recent gains, Bitcoin faces strong resistance around the $65,000 level. Market technician Aksel Kibar noted that Bitcoin’s ability to stay close to this resistance without a significant drop is a positive long-term sign. Data from IntoTheBlock shows solid support near $62,700, where significant buying activity has occurred.
In the short term, Bitcoin’s price appears to be consolidating within a narrow range. Bulls are defending key support levels, while bears remain cautious. The upcoming weekend could bring increased volatility, potentially setting the stage for a notable price movement.
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Bitcoin’s ‘Crazy Tight’ Bollinger Bands Indicate Potential $190K BTC Price Target
