It might signify that a huge volatility spike is imminent.
The price of Bitcoin has been relatively stable from 2019 to 2020.
The monthly Bitcoin price chart with Bollinger Band.
In the months to come, the volatility of Bitcoin could gradually increase if a similar pattern ensues as 2016.Is a post-halving Bitcoin bull cycle beginning to materialize?
The Bollinger Band uses the moving average of an asset's chart to determine a volatility range.
The primary reason why a narrow Bollinger Band indicates a volatility spike is likely because it means the range is getting tighter.
If Bitcoin drops or increases within a tight range, the possibility of breaking down or upwards from the range increases.
The price range is broad and it would take significant buying demand or selling pressure for the range to break.
According to Bitcoin trader Nunya Bizniz, the Bollinger Band for the monthly chart of Bitcoin has never been narrower.
Bitcoin has been stable for a prolonged period within a tight range between $10,500-$11,000.
A 2016-level massive Bitcoin price volatility spike might be near
Publicado en Oct 7, 2020
by Cointele | Publicado en Coinage
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