{"id":494274,"date":"2022-06-27T21:11:30","date_gmt":"2022-06-27T21:11:30","guid":{"rendered":"https:\/\/wncen.com\/?p=494274"},"modified":"2024-06-11T14:21:06","modified_gmt":"2024-06-11T14:21:06","slug":"bitcoin-monthly-lower-bollinger-band-bottom","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-monthly-lower-bollinger-band-bottom\/","title":{"rendered":"Bitcoin Monthly Tags Lower Bollinger Band, Tool’s Creator Hints At Bottom"},"content":{"rendered":"

Bitcoin price action<\/a> on monthly timeframes has made a historic move to the touch the lower Bollinger Band \u2013 a popular technical indicator and volatility measuring tool.<\/p>\n

Although he warns there isn’t yet a sign that a bottom is in, the tool’s creator says where price action tapped is a “logical” level for such a bottom to occur.<\/p>\n

Unprecedented Bitcoin Price Action Taps Monthly Bollinger Band For First Time In History<\/h2>\n

Expectations for Bitcoin price in 2022 were closer to $100,000 per coin and above. Yet the top cryptocurrency today is trading close to its former 2017 all-time high at $20,000.<\/p>\n

But unprecedented macro conditions has caused unprecedented price action in Bitcoin and other cryptocurrencies. Never in the past has the top cryptocurrency by market cap retested its former all-time high this way<\/a>.<\/p>\n

And never did Bitcoin price on monthly timeframes ever reach the lower Bollinger Band<\/a>. But that’s exactly what happened this past month when crypto market contagion spread and brought asset prices down considerably.<\/p>\n

$\"bitcoin$ <\/p>\n

BTCUSD monthly touches down on the lower Bollinger Band | Source: BTCUSD on TradingView.com<\/a><\/pre>\nTouching the lower Bollinger Band, however, could be a logical place for a bottom according to the tool’s creator.<\/p>\nTime To Pay Attention: John Bollinger Points Out Logical Level For Potential Bottom<\/h2>\nThe Bollinger Bands<\/a> are a technical analysis tool that can help to measure and predict volatility, or find areas of potential resistance and support. It was created in the 1980s by John Bollinger<\/a>, who today is a frequent Bitcoin speculator. It relies on a 20-period simple moving average and a dynamic upper and lower band set each at two standard deviations.<\/p>\n
Mr. Bollinger pointed out the touch of the lower Bollinger Band\u00a0in a new tweet<\/a>, where he suggests the area would be a “logical” level to bottom. Bollinger did warn, however, that there still aren’t signs of such bottoming yet.<\/p>\n
In the past, Bollinger was able to call out the April 2021 peak<\/a> by spotting a “three pushes to a high” bearish reversal pattern with striking accuracy. The analyst says his tools later confirmed what he says was an “M-type” double top.<\/p>\n
\nPicture perfect double (M-type) top in BTCUSD on the monthly chart complete with confirmation by BandWidth and %b leads to a tag of the lower Bollinger Band. No sign of one yet, but this would be a logical place to put in a bottom.https:\/\/t.co\/KsDyQsCO1F<\/a><\/p>\n
— John Bollinger (@bbands) June 27, 2022<\/a><\/p><\/blockquote>\n