Bitcoin (BTC) could see price volatility as it retests important levels, according to a classic technical analysis indicator.
In a post on the X platform on December 18, John Bollinger, the creator of the Bollinger Bands volatility indicator, stated that Bitcoin is well-positioned for a breakout to the upside.
Bitcoin and Bollinger Bands: The possibility of 'climbing'.
After reaching a new all-time high of $108,000 on December 17, Bitcoin has broken above the upper band of the Bollinger Bands (BB) – a barrier that Bitcoin has been unable to break since mid-November, according to data from TradingView.
This is a positive signal for Bitcoin, according to Bollinger. The Bollinger Bands indicator uses standard deviation around a simple moving average to determine price ranges and potential volatility.
In recent days, the BTC/USD pair has recorded daily candles touching the upper band of the Bollinger Bands. When this occurs, there are two possibilities: the price will reverse back to the middle line or a strong upward volatility will occur.
The second scenario is more likely as Bitcoin's recent moves have pushed the upper band of the Bollinger Bands higher.
"Bitcoin (BTC/USD) is giving a practical lecture on Bollinger Bands," Bollinger remarked alongside a chart.
Daily chart of BTC/USD with Bollinger Bands | Source: John Bollinger/TradingView
"A classic Bollinger Bands squeeze phenomenon leads to 'upward' price movement along the upper band."
The possibility of Bitcoin continuing to rise from its current level has led to some ambitious new price targets being set for 2025 and beyond.
Bitcoin's price could reach $350,000 by 2025.
According to Mauricio Di Bartolomeo, co-founder of Ledn, Bitcoin will continue to increase in value compared to gold, eventually reaching an equivalent of 50 ounces of gold per BTC.
"I believe Bitcoin will continue to increase in value compared to gold and reach an equivalent of 50 ounces of gold," Bartolomeo wrote in an article on December 19 for Forbes.
At the current exchange rate, this would equate to a BTC price of $132,500.
He added: "I expect to see a series of portfolio allocation recommendations from ETF issuers' research desks and investment advisors, encouraging clients to add Bitcoin to their portfolios."
A recent report from BlackRock stated: "Investors can use Bitcoin as a strategic hedge, similar to gold."
Bartolomeo emphasized:
"If you are a fully allocated investor and are considering switching to Bitcoin, you may want to reduce your gold position to make room, as this is its 'digital' version."
Robert Kiyosaki, a passionate supporter of Bitcoin since 2017, has made more ambitious predictions.
In a post on December 18 on X, Kiyosaki set a new target for Bitcoin, predicting the price could rise to $350,000 by 2025.
Kiyosaki's forecast remains more cautious compared to Perianne Boring, the founder of The Digital Chamber, who predicts Bitcoin's price could reach $800,000 based on the stock-to-flow model. Such a rise would bring Bitcoin's market capitalization to around $15 trillion, up from the current level of over $2 trillion.
PlanB, the creator of the stock-to-flow model, forecasts the average price of Bitcoin to be around $500,000 in 2025. However, he also believes the price could reach $1 million.
https://tapchibitcoin.io/bollinger-bands-du-bao-bitcoin-sap-tang-vot.html
