Legendary trader John Bollinger, known for his technical analysis, bitcoin He noted that his chart is starting to show “classic Bollinger Bands” behavior.
Used by industry experts to analyze volatility and price levels. Bollinger BandsJohn Bollinger, who is known for creating the top band, outlined a classic sequence on the chart: “Explode, tear off the upper band, consolidate, find support in the mid band, and spin higher.”
Bollinger Bands are actually a set of three lines drawn on a price chart. The middle band is typically a simple moving average over 20 periods, with the upper and lower bands plotted two standard deviations away from the middle band. Bands expand and contract with volatility. Therefore, bands widen when the market is volatile and narrow when the market is stable.
John Bollinger’s Twitter post, on the other hand, contains the message that while the Bitcoin price is trading around $30,200, it has found support in the “mid band” and is an indication that a price increase may be on the horizon.
Bollinger’s pattern begins with an aggressive price surge, an “explosion”, where Bitcoin price exceeds the upper Bollinger Band and results in a “rupture in the upper band”, which indicates strong bullish momentum.
This is usually followed by a consolidation period where the price stabilizes and corrects towards the middle band. The pattern completes when the price finds support in the middle band and then rebounds, signaling a potential new wave of buying pressure.
You can follow the current price action here.