This is a daily technical analysis of Coindesk analyst and chartered market technician Omkar Godbole.
A key indicator suggests that Bitcoin’s
The price could soon become more unstable, which may lead to the next leg higher in cryptocurrency.
This indicator is based on the gap between Bollinger bands, which are volatility bands placed two standard deviations above and below the 20-week simple sliding average of Cryptocurrency’s price.
When the gorge is expanded, it indicates that the market is more active and fleeting – a phenomenon that is historically observed in front of significant movements upwards in BTC. When the gap is narrowed, it indicates less activity.
The gap, also known as the Bollinger Band spread, could soon be expanded in a positive sign for Bulls, as the MacD histogram associated with the same hole has become positive.
Using the spread between Bollinger -Bands as Input in MacD histogram, Bullish or Bearish volatility signals and identify periods of turbulence and tranquility. Dealers typically use the indicator to detect trends that are turned into prices.
The top window shows Bitcoin’s weekly open, high, low and dense (per UTC) in candlestick format. The middle window shows the spread or gap between Bollinger straps, with MacD attached to the spread of the lower window.
MACD has now turned positively, indicating a renewed expansion of the spread or volatility boom in front. By default, volatility is price-embroidery, which means that an impending activity can be bullish or bearish.
That said, a closer look at the above diagram reveals that previous positive crossovers of MacD (marked with vertical lines) supposed large bull runs, including the end of 2020 and end of 2024 pricing.
Let’s see if the story repeats itself.
