Bitcoin Bulls Eyeing Breakout as Bollinger Bands Indicator Signals Positive Momentum
Renowned trader John Bollinger, the creator of the widely used Bollinger Bands technical indicator, suggests that Bitcoin (BTC) is on the verge of a bullish breakout. With over 233,800 followers on the social media platform X, Bollinger points out that Bitcoin is showing signs of forming two bullish continuation patterns on the weekly time frame.
According to Bollinger’s analysis, Bitcoin needs to surpass its diagonal resistance level at $65,000 to confirm a breakout from the pattern. He highlights the formation of a “nice little W pattern” on the weekly BTCUSD chart and emphasizes the bullish setup that is awaiting confirmation.
Based on Bollinger’s chart, the critical level for Bitcoin bears to defend is the range high of the Bollinger Bands, currently around $73,000. Traders commonly use Bollinger Bands to identify potential periods of volatility expansion and determine if an asset is overbought or oversold.
Other analysts are also eyeing the $65,000 price level as a pivotal point for Bitcoin’s price action. Pseudonymous analyst Altcoin Sherpa, with a following of 223,400 on X, believes that breaking above $65,000 would establish a higher high for Bitcoin and potentially signal a shift in market structure.
Another analyst, Josh Rager, also sees a bull flag pattern for Bitcoin with a key trend-shift area at $65,000. Rager emphasizes the importance of patience in the coming weeks as the market dynamics unfold.
As of the latest update, Bitcoin is trading at $64,364, with traders closely monitoring the price action around the key resistance levels. The cryptocurrency market is poised for potential bullish momentum if Bitcoin manages to break above $65,000 and sustain its upward trajectory.
Stay tuned for more updates on Bitcoin’s price movements and market analysis.
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