Cryptocoin - The first weekend of July is ending, however, the weekly closing candle for Bitcoin (BTC) is curious. Beginning in early June, Bitcoin had relatively low volatility. This is best illustrated by the tight trading range seen from June 25 to the present.
During the last time frame, Bitcoin traded between $ 9,300 and $ 8,800. At the time of writing, BTC once again moves steadily in the $ 9,000 support zone. This fact led some crypto traders to announce that Bitcoin is real stablecoin.
Bitcoin Indicates a Bollinger Jam - A Big Move Is Near
This tight trading range of Bitcoin creates what is known as the Bollinger Band jam. According to the inventor of the trade indicator, John Bollinger, such low volatility periods are usually followed by high volatility periods.
A narrowing in volatility or a narrowing of the bands can be a precursor to a significant improvement or decline. After Band Jam occurs, a subsequent band break marks the beginning of a new move. A new advance begins with a jam on the upper band and then breakage. It begins with a new drop, squeezing and then breaking under the bottom band.
On the daily BTC / USDT chart, it can be seen that the price of Bitcoin is closer to the lower band and the Bollinger Bandwidth indicator is low at 0.21. This indicator measures the percentage difference between upper band and lower band. It allows you to see the Bollinger jam better, which is evident with Bitcoin.
What's Next for Bitcoin?
As a result, Bitcoin is moving in a tight trading range between $ 9,300 and $ 8,800. This clearly emerges as a non-commercial zone, as shown by the formation of a Bollinger jam. In addition, this jam is often the forerunner of great movement in both directions.
Therefore, it can currently go for Bitcoin either way. A cautious move would wait for a break in both directions. A break above $ 9,300 points to another $ 10,000, while a break below $ 8,800 may indicate lower levels of $ 8,500 on a 200-day moving average.
As with all Bitcoin analysis, traders and investors are advised to use risk management techniques such as stop-losses and low leverage at uncertain times. The 'wait and see' approach can also be a good idea in times of uncertainty.