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Bitcoin's price action this week hints that it might be finding a bottom. The cryptocurrency has been bouncing off the lower Bollinger Band for the past three weeks. While not definitive, this repeated interaction with the lower boundary may signal that selling pressure is starting to fade.
The Bollinger Bands are a popular technical indicator that helps traders estimate volatility and potential price extremes. The middle band is a moving average, and the outer bands adjust with volatility.
Alex DovbnyaRight now, Bitcoin's price has been testing the lower Bollinger Band a bunch, but it has not broken below it. It seems like buyers might be stepping in as the price gets close to this key level.
It's important to keep an eye on this trend because when Bitcoin (BTC) finds support at the lower Bollinger Band, it suggests a possible floor — a spot where downward pressure weakens and buying interest picks up.
If this pattern keeps up, the next key level to watch is the middle band, which is currently around $94,500, about 13.5% above the current price. If Bitcoin pushes through this level, the upper band at $107,600 could be the next target.
But remember, the weekly time frame is a slower-moving indicator. Changes usually take weeks to happen, so any shift in momentum might not happen overnight. Right now, it looks like Bitcoin might be finding a stable spot, but there's room for a bigger move down the road.
There is no need to rush.
Vladislav Sopov
Dan Burgin