The width of the Bollinger bands, one of the most used indicators on the Bitcoin (BTC) chart, by many traders, has “extremely narrowed” after a long time. Experts think that such a contraction in the indicator is a harbinger of a sharp price movement.
Approximately narrow for 3 months in December In moving Bitcoin, the Bollinger bands used to measure the volatility trend have narrowed considerably. Many analysts in a short time due to the squeeze experienced in the indicator. a volatile price movement waiting. However, in order for Bitcoin to be clear in which direction it will move, it is necessary to experience a “slight expansion” in the indicator.
When Bollinger bands have been this tight on Bitcoin before a sharp fall had been observed. However, although the current move is expected to be harsh, which direction will the price move? to guess It is considered to be quite difficult. According to many commentators, the indicator showing low volatility when the band gaps narrow, the narrower the band the price it moves so “hard”.
Will this squeeze bring a fall or a rise?
Before the inflation data to be announced tomorrow, the market started to become less volatile. As in traditional markets with inflation data volatility in the cryptocurrency market Waiting. The data to be announced will be directly provided by the US Federal Reserve (FED). interest rate decision known to affect
Inflation data above expectations the FED will continue to increase its aggressive interest rates, therefore, there will be a trend in the crypto money market. there will be a withdrawal is estimated.
However, the inflation data below expectations There may be a relief in the markets. In this way, a rise can occur in Bitcoin. As a result of the squeeze in the Bollinger bands, Bitcoin’s Which direction will it move? can be clarified with inflation data.
