A closely watched indicator for %Bitcoin (CRYPTO: $BTC) is flashing bullish signals, suggesting that a sharp move higher in the largest cryptocurrency’s price could be imminent.
The indicator, called “Bollinger Bandwidth,” previously predicted the late 2023 boom in Bitcoin’s price. Now, that same indictor is again showing signs of a positive price movement.
The %Bollinger indicator measures volatility in Bitcoin’s price by looking at the standard deviations above and below the cryptocurrency’s 20-day/week simple moving average.
The Bollinger reading has now declined to 20% on the weekly chart, a level last seen days before Bitcoin broke out of its then multi-month trading range of $25,000 U.S. to $32,000 U.S. last October.
Bitcoin then rallied above $40,000 U.S. by the end of 2023 and went on to hit an all-time high of just under $74,000 U.S. in March of this year.
The latest bullish sign from the Bollinger indicator comes as Bitcoin has spent the last four months trading in a range of $60,000 U.S. to $70,000 U.S.
The Bollinger has been extremely accurate at predicting price breakouts for Bitcoin, turning bullish right before previous rises seen in 2018, 2016, and 2012.
The price of Bitcoin is currently at $64,450 U.S. and is up 45% on the year.
COMTEX_455879766/2848/2024-08-01T11:04:37