Bitcoin Price Must Hit $7.3K to Avoid Bearish Bollinger Band 'Squeeze'

Bitcoin briefly fell back below $7,200 on Dec. 14 as bearish sentiment continued to pervade cryptocurrency markets.

Over the past 24 hours, Bitcoin hit local highs of $7,290 but still failed to break out of its general downtrend, which has persisted throughout the past week.

One indicator, in particular, Bollinger Bands, predicted volatility would soon return to both Bitcoin and altcoins.

"Most crypto currencies are at or near Bollinger Band Squeeze levels. Time to pay attention," inventor John Bollinger tweeted on the day.

Bollinger Bands are a price-performance forecasting model revolving around the 20-day simple moving average of an asset.

In times of low volatility, the bands contract, or "Squeeze." In Bitcoin markets, resolving the implied "Pressure" on the price tends to come via a price breakout.

"Eventual resolution of all moves of this caliber have resulted in initial 20%+ price swing," fellow pundit Josh Olszewicz added in separate comments on Bitcoin's Bollinger Band position.

Olszewicz noted that Bitcoin was currently in a squeeze that had occurred only a handful of times in 2019; each resolved with an upward or downward breakout.

As Cointelegraph reported, others shared the sentiment that conditions were not likely to remain predictable for Bitcoin for long.

Ether, the largest altcoin by market cap, barely moved, down just 0.1% at press time to trade at $144.50.Ether seven-day price chart.