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When it comes to cryptocurrency, traders look at different indicators to try and predict where the market is going, and one of the most battle tested technical analysis tools can be called Bollinger Bands.
Right now, the Bollinger Bands are showing a bearish signal for Bitcoin (BTC) as, if you look at the BTC/USDT chart from Binance on the daily time frame, it looks like Bitcoin might be heading down.
Arman ShirinyanIn particular, the Bollinger Bands show Bitcoin's price has fallen below the middle band — generally a 20-day moving average — and has also struggled to reclaim it. Right now, the middle band is between $85,000 and $78,000, and Bitcoin's inability to break above it strengthens the bearish view.
Bitcoin's value has dropped to $82,700 today, which is a 1.55% loss for the day — and part of a bigger downward trend that started at the end of February. Back then, BTC was trading close to $105,000, and since that peak, it has fallen a lot, crashing through several support levels that previously held firm.
Yuri MolchanIf you look closely at the chart, you will see that every time Bitcoin tries to get back to the middle Bollinger Band, around the $85,000 mark, it has fallen short. This ongoing failure to break through a key level points to ongoing bearish pressure.
If Bitcoin cannot bounce back and hold above that middle band, it is more likely to dip toward the lower band near $78,000.It is hard to predict Bitcoin's price movements, but the ongoing struggle against the Bollinger Band resistance suggests the market is still a bit unsure.
Vladislav Sopov
Dan Burgin