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Bitcoin Bollinger Bands hit level that saw BTC price squeeze past $50K

News Feed - 2024-04-23 04:04:32

William Suberg1 hour agoBitcoin Bollinger Bands hit level that saw BTC price squeeze past $50KThe Bitcoin volatility indicator suggests that BTC price action is due for a breakout as it returns to levels last seen in mid-February.752 Total views1 Total sharesMarket UpdateOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin (BTC) stuck near $66,000 on April 23 as waiting sellers kept BTC price action firmly in check.BTC/USD 1-hour chart. Source: TradingViewLiquidity keeps BTC’s price in a tight range


Data from Cointelegraph Markets Pro and TradingView revealed an ongoing new trading range in place since after the weekly close.


While overall higher than last week, BTC/USD offered little inspiration to bulls — an overnight rally to $67,200 failed to close a nearby CME Group Bitcoin futures gap.


This, combined with another gap lower at $64,400, forms near-term BTC price targets, which have yet to be hit.


Analyzing the current status quo, popular trader Marco Johanning identified $66,700 as the “key level” for Bitcoin to flip to support going forward.


“Looking at the range, BTC reclaimed midrange and then sent from there,” he wrote in part of a post on X (formerly Twitter) on the day.“However, it couldn’t flip the next level at 66.7k so far. That’s the key level for today.”BTC/USD chart with CME futures gaps. Source: Daan Crypto Trades/X


Johanning saw two options based on the market’s treatment of the $66,700 mark: “a) Flip 66.7k -> head towards the old trendline and range high,” and “b) Get rejected at 66.7k -> fall back to midrange, potentially with a wick below to close the CME gap.”


“Both scenarios assume that the short-term trend will continue, and we will move towards the range high,” he added.


The post referenced the current liquidity landscape on exchange order books, which continued to show bids and asks tightly wound around spot price.


Data from monitoring resource CoinGlass confirmed on the day that $66,000 and $67,350 formed the biggest support and resistance levels, respectively.BTC liquidity heatmap (screenshot). Source: CoinGlassBollinger Bands reach February breakout zone


Anticipation of a larger BTC price move, meanwhile, lingered in the background.


Related: BTC trades at ‘deep discount’ after halving — 5 things to know in Bitcoin this week


For popular trader and analyst Matthew Hyland, changing Bollinger Bands conditions on three-day timeframes indicated that a range breakout — either up or down — should come soon enough.


The width of the Bands, a classic volatility indicator, is currently the narrowest since mid-February, when BTC/USD last traded below $50,000.


At the time, Cointelegraph reported on the implications of Bollinger Bands behavior for BTC price action, with analysis seeing an upside “squeeze,” which ultimately became reality.BTC/USD chart with Bollinger Bands, Bollinger Bands width data. Source: Matthew Hyland/X


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Bitcoin Price# Volatility# MarketsAdd reaction