A new trading trend could propel Bitcoin (BTC) to record-breaking highs, according to a popular trader on social media. Titan of Crypto, a well-known trader on Twitter, flagged a rare bull signal on the Bollinger Bands indicator for the Bitcoin monthly chart on May 5.
Volatility is a key indicator in Bitcoin’s price action across different timeframes. While skeptics are questioning its short-term movements, a vast majority agree that Bitcoin’s upside potential lays ahead as the block subsidy halving approaches. In the past two halving cycles, the Bollinger Bands on monthly timeframes set up a repeat of a breakout event, which occurred once in each cycle. The Bollinger Bands are a crucial indicator that helps identify the price’s volatility based on the 20-period SMA midline that marks the center of the chart, while the two standard deviations mark the channel’s upper and lower levels.
The recent monthly BTC/USD chart depicts the price attempting to break above the SMA line, which, when confirmed, would suggest a repeat of past bull runs from the lower to the upper section of the Bollinger Channel. Titan of Crypto describes this trend as an “inexorable breakout” and made the following prediction regarding prices: “That would bring Bitcoin to a solid $63,500.”
This prediction would come close to the point of halving in one year’s time; however, it is unclear how long it would need to become a reality. Last month, John Bollinger, the band’s creator, argued that Bitcoin was at a crucial point on daily timeframes. At the time, the price was retesting the SMA line as support, whereas, currently, it is heading towards the upper band. According to TradingView’s data, low-timeframe Bollinger Bands norms remained intact even with Bitcoin’s comedown from the local highs of $31,000.
The fact that Bitcoin is at a crucial point on daily timeframes could translate to potentially creating new record-breaking highs as the Bitcoin price continues to surge. According to Titan of Crypto, a Bollinger Band breakout indicates an “inexorable breakout” which could see BTC record a significant gain in value.
Note: This article does not provide any financial advice or recommendations to readers; it is not responsible for the reader’s investments.
According to https://cointelegraph.com/news/bitcoin-trader-eyes-63k-btc-price-for-new-bollinger-bands-breakout
The material in this article is written on the basis of another article.