Fresh Upside Volatility in Sight for Bitcoin
Bitcoin (BTC) may experience a surge in upside volatility as its price strength approaches key levels, according to a metric developed by John Bollinger, the creator of the Bollinger Bands volatility indicator.
Bitcoin Challenges Resistance Levels
After reaching new highs in September, Bitcoin is now challenging resistance levels that have been out of reach since mid-August, as per data from Cointelegraph Markets Pro and TradingView.
Encouraging Signs from Bitcoin
Bollinger sees positive signs from the largest cryptocurrency. Bollinger Bands, which determine likely price ranges and volatility using standard deviation around a simple moving average, show that BTC/USD is currently producing daily candles that touch the upper band. This can signal either a reversal back to the center band or an influx of upside volatility.
The recent narrow Bollinger Bands witnessed in Bitcoin reinforce hopes that the latter scenario will unfold.
Bitcoin Traders and Analysts Remain Cautious
Despite the strength seen this week, caution remains among experienced Bitcoin traders and analysts on short timeframes. Various trendlines that previously acted as support are now above the spot price.
Material Indicators, an on-chain monitoring resource, suggests questioning the momentum of the bulls. The upcoming decision by the United States Federal Reserve on interest rates could cause sudden volatility and unreliable short-term trading signals.
Invest with Care
This article does not offer investment advice or recommendations. It's important to remember that every investment and trading decision carries risks, and readers should conduct their own research before making a decision.
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