Bitcoin Bulls Snap Back With The Bollinger Bands

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In this episode of NewsBTC’s daily technical analysis videoswe look at the latest rise in Bitcoin price using the Bollinger Bands across different time frames and explain why a close above the upper band could lead to a larger move upwards.

Watch the video below:

VIDEO: Bitcoin Price Analysis (BTCUSD): October 4, 2022

Biblical Bear Market Bottom Pattern Is Back

The rounded bottom would be the second half of one Adam and Eve double bottom formation. This is the same pattern that resulted in the 2018 bear market bottom and is characterized as a V-shaped correction followed by a slower rounded bottom.

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Is another bear market bottom building? | Source: BTCUSD on TradingView.com

Crypto Market Gets Ready to Ride on Tires

Bitcoin’s latest surge is especially noteworthy for its daily close outside the upper Bollinger Band. As you can see from the last time this happened, it can lead to a strong rejection back to the center of the BB. Keeping above this level could lead to greater movement upwards.

Expansions in volatility are the most important and worth paying attention to, as the creator of the tool would probably say themselves. When the Bollinger Bands squeezing, it’s a sign of low volatility – a short-lived phase that always ends with a bang and a big move.

Closing the daily day above about $20,350 would do the trick and keep Bitcoin above the upper band. If not, the next logical target is probably the mid-band at $19,400.

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Monthly Bollinger Bands Give Two Possible Targets

the monthly Bollinger Bands were tapped for the first time in Bitcoin history during this bear market. This suggests that the Bitcoin price has historically been extremely low relative to the monthly price action and could represent a buying opportunity.

The lower band is drifting downward, meaning that if Bitcoin also continues downward, its next target could be as low as $12,000 before more dynamic support is found. If Bitcoin returns to the upper band, it will target $60,000 BTC instead, making the setup decent in terms of risk versus reward.

However, if Bitcoin can maintain its upward momentum, a new uptrend could confirm it. Not only is the TD Sequential useful for finding potential turning points when the sequence hits a 9 or 13, a new 1 can often signal the start of a new uptrend and is yet another important signal.

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