Bitcoin Traders Watch $63K BTC Price for New Bollinger Bands ‘Breakout’
Bitcoin (BTC) could be set for historic gains thanks to a simple trendline break, hopes a popular trader.
In a Twitter discussion On May 5, the Titan of Crypto flagged a rare bull signal on the Bollinger Bands indicator for Bitcoin’s monthly chart.
Bitcoin Price Could See ‘Inexorable Breakout’
BTC price action is currently affecting sentiment in different ways over different timeframes. While observers are uncertain about short-term moves, zoom out, the consensus remains that Bitcoin’s upside is largely ahead as the block support halving approaches.
When it comes to tracking what comes next, however, looking at past halving cycles – specifically volatility – can be enough.
As Titan of Crypto notes, Bollinger Bands on monthly timeframes set up a repeat of a breakout event that has only happened once in each cycle.
In the two previous cases shown on an accompanying chart, 2016 and 2019, BTC/USD broke through the upper part of the Bollinger Band channel to see significant gains.
Bollinger bands are an important volatility indicator across price timeframes. They revolve around a 20-period simple moving average (SMA) that acts as a center line, with two standard deviations above and below representing the channel.
These bands expand and contract with volatility, and certain events, including price contacting the bands or even breaking beyond them, are often considered significant by traders.
Currently, the one-month BTC/USD chart shows the price trying to break above the SMA line, which, if confirmed, would suggest a classic repeat of the previous bull run.
Titan of Crypto commented on it as a “relentless breakout.
“BTC is about to break its monthly Bollinger Bands baseline. And when that happens, the first target will follow inexorably,” he added.
“That would bring Bitcoin to a solid $63,500.”
While not quite enough to match the current record high, the price target could come around the halfway point in a year. How long it actually needs remains to be seen, Titan of Crypto acknowledged.
The BTC price tells its time
Last month, John Bollinger, the band’s creator, himself claimed that Bitcoin was at a crucial point in daily time frames.
Related: Is Bitcoin Overbought or Oversold? Use Bollinger Bands to find out!
At that point, price retested the SMA line as support and then broke through to range around it. Now, however, it is heading higher towards the upper band, data from Cointelegraph Markets Pro and TradingView show.
Subsequently, analyst CryptoCon suggested that low timeframe Bollinger Bands norms remained intact despite Bitcoin’s fall from local highs of $31,000.
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This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making a decision.
