Secure Your Seatbelts: Here’s Why Bitcoin Could Be Revving Up for a Mind-Blowing 200% Surge
Amidst the current state of the Bitcoin market, which seems to be showing signs of a comeback, a well-known crypto analyst going by the name Wise Advice has brought attention to a significant indicator in Bitcoin’s trading pattern.
The analyst has pointed out that the Bitcoin weekly Bollinger Band, a statistical chart that depicts prices and volatility over time, has contracted to its second lowest width in the past six years. Historically, such narrowing has preceded substantial price movements.
According to Wise Advice, a similar constriction occurred before Bitcoin skyrocketed by 200% within five months, starting from a base of $24,000 and peaking at a remarkable high. This indicator stands out, signaling an imminent increase in market volatility that could potentially result in a significant price surge.
For context, Bollinger Bands are a set of trend indicators derived from a moving average, with upper and lower bands set at a standard deviation from the moving average. Utilizing this tool enables traders to gauge the current price’s relative high or low compared to previous trades.
A contraction in these bands typically suggests a reduction in volatility, often followed by a sharp price increase or decrease, indicating the market’s preparation for a major move.
Bitcoin Holders, Pay Attention 🚨
The #Bitcoin weekly Bollinger band has now reached its second lowest level in the past six years.
The last time it hit this low, #BTC was trading at $24K, and it surged by an impressive 200% in just five months pic.twitter.com/jnud3pCjAr
— Wise Advice (@wiseadvicesumit) July 1, 2024
Despite an encouraging setup, Bitcoin has recently struggled to maintain its upward momentum. Over the past week, although there has been a modest 3% recovery, the price has faced resistance, peaking at $63,790 and then slipping back to around $62,563.
This recent price action takes place amidst the broader market’s anticipation of a favorable July. Market analysts, including the team at QCP Capital, refer to historical data that shows Bitcoin’s tendency to bounce back in July, with an average return of 9.6%, particularly after weak performances in June.
Various market commentaries support this observation of a strong July following a weak June. It’s not just QCP Capital; other analysts like Ali have also noted similar recovery patterns in past post-June downturns, hinting at a robust comeback in July.
Adding to the bullish sentiment are significant inflows into US spot Bitcoin ETFs. Just this Monday, these funds recorded daily net inflows amounting to $129.45 million, marking the fifth consecutive day of positive flows and the most substantial intake since early June.
Leading the way in terms of inflows were Fidelity’s FBTC and Bitwise’s BITB, signifying that institutional interest remains robust despite the recent market fluctuations.
Featured image created with DALL-E, Chart from TradingView