Analysis: Bitcoin’s “extremely tight” weekly Bollinger Bands signal a big rally

Julien Bittel, head of macro research at financial advisory publication Global Macro Investor, said that Bitcoin has a chance to rise to six-digit all-time highs if volatility signals anything like they have in the past. Bittel said that the current state of the Bollinger Band volatility indicator suggests that Bitcoin will rise sharply. He concluded, "By historical standards, the Bollinger Bands are extremely tight, and there have only been two other months in history where we have seen weekly Bollinger Bands this tight: April 2016 and July 2023." Bittel continued, "The Bollinger Bands are one of the most important crypto volatility indicators, providing insight into the strength of price trends. The gap between the upper and lower bands is rarely this narrow on a weekly timeframe. Traditionally, what happens next is always good news for bulls. In the previous two events, Bitcoin prices rose sharply in the following 12 months." Last month, Bittel made a similar prediction for Bitcoin's future, calling for "patience" during the worst price drops in the bull market. Bittel concluded, “If history repeats itself, Bitcoin will break out of the re-accumulation range in September 2024.” (Cointelegraph)