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Bitcoin (BTC) Sees Rare Weekly Chart Occurrence, Where Might This Lead?

Mon, 07/31/2023 - 11:54
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Tomiwabold Olajide
BTC traded comfortably above $29,300 for much of weekend
Bitcoin (BTC) Sees Rare Weekly Chart Occurrence, Where Might This Lead?
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Bitcoin analyst Matthew Hyland draws attention to a rare occurrence on the Bitcoin weekly chart.

Hyland observes that the BTC Weekly Bollinger Bands have reached their tightest levels in BTC's entire history.

The Bollinger Bands, developed by famed trader John Bollinger, serve as a predictor of volatility and price levels where an asset may encounter support or resistance.

Earlier this month, on-chain analytics platform Glassnode indicated that Bitcoin might be in its quietest market period since January. This comes as the cryptocurrency market continues to experience unusually low volatility.

Bitcoin (BTC) Now Extremely Squeezed, On-chain Data Hints at Significance

The relevance of this is that because Bitcoin is rarely quiet for such long periods, the likelihood of a volatile move either way increases.

Twitter Crypto analyst "Jelle" predicts that a major move might be brewing for the first and largest crypto asset: "Either way, a major move for Bitcoin is brewing, as volatility is at historic lows.Weekly Bollinger bands have never been as tight as they are today.Fireworks, soon."

In another Twitter update, Jelle stated, "Expecting this week to be slow, but fireworks to start next week."

Bitcoin price action

BTC traded comfortably above $29,300 for much of the weekend before plummeting in the hours following Curve Finance's announcement of a breach. BTC had slightly rebounded and was marginally up in the last 24 hours to $29,378 at the time of writing.

$33 Billion Worth of BTC Added by This Class of Bitcoin Holders in Big Move

Despite BTC's present sideways trading, the market forecasts a surge in volatility and a likely large BTC price gain, bolstered by Bitcoin's upcoming halving and demand spurred by a Bitcoin spot ETF, if it is launched.

In the short term, two scenarios remain: the bears attempt to bolster their position by sustaining the price below the critical MA 50 at $29,447. If this holds, BTC could remain rangebound between $31,000 and $24,750 for the foreseeable future.

Alternatively, a break and close above the overhead barrier at $30,277 might indicate that the advantage has tilted in favor of bulls. BTC might target the $31,000 to $32,000 levels afterward.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.