Bitcoin Bollinger Bands Squeezing: Is BTC Ready For $140,000?
20 July 2024 - 3:30AM
NEWSBTC
Bitcoin is in an uptrend, but events in the daily chart show
pockets of weakness. Though BTC is stagnant, analysts are upbeat,
expecting prices to rise in the days to come. Is Bitcoin Ready To
Rip Higher: Analyst Says Bulls Are Eyeing $140,000 Taking to X, one
analyst has picked out an unusual development: In the weekly chart,
the Bitcoin Bollinger Bands (BB) is currently at their tightest
level in history. Besides April 2016 and July 2023 events, the
Bitcoin BB is tightening, forming a squeeze. Related Reading:
Solana Price Could Eclipse $1,400 As Massive Bull Flag Emerges
Since BB is a technical indicator used to gauge underlying
volatility, what’s happening now should draw traders’ attention.
Specifically, prices tend to explode within the next few sessions
whenever BB forms a squeeze, compressing to what is now. However,
traders should also know that the direction of breakout can be in
either direction. In the past, Bitcoin prices rose higher. To
illustrate, after the BB squeeze in July, the coin went on to fly
in the coming months, breaking $70,000 by March before the coin
rose to $73,800. If the past guides, and indeed, prices explode at
the end of this squeeze, the analyst predicts Bitcoin flying to
$140,000 and even $190,000 in the next few months. The
expansion would be a welcomed boost for bulls, considering that
prices are now in what the analyst described as a “boring zone.”
Any uptick above $73,800 and all-time highs, pushing BTC to
six-digit levels, would automatically be in the “banana zone.” Spot
BTC ETF Issuers On A Buying Spree, Donald Trump’s Endorsement The
confidence that Bitcoin will rip higher is also due to fundamental
factors. Despite the current price lull after the refreshing
surge earlier this week, spot Bitcoin ETF issuers are buying.
BlackRock is spearheading this buying spree. Records show that the
asset manager bought over $1 billion of BTC in July. On July 18,
one observer noted that they bought 18,600 BTC, or $107 million
worth of the coin, on behalf of their clients. According to
SosoValue, as of July 19, BlackRock’s IBIT manages over $20 billion
worth of BTC. Related Reading: Mass Exodus? Over 672,000 Bitcoin
Holders Drop Out Amid Market Shifts Moreover, adding fuel to the
fire, it is speculated that if Donald Trump wins the United States
presidency, his administration might consider BTC a strategic
reserve. While this possibility is debatable for now, it highlights
the growing interest from policymakers, which is a massive boost
for crypto. Feature image from DALLE, chart from TradingView
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