Recent patterns formed in Bitcoin Bollinger Bands show the digital asset is experiencing an intense tightening by historical precedence. As noted by Julien Bittel, Head of Macro Research at Global Macro Investor, such a squeeze has only been witnessed in two other months. That is, April 2016 and July 2023 when the weekly Bollinger Bands were so compressed.
What the Bollinger Bands Hints About Bitcoin
Notably, in the course of over a decade of since Bitcoin gained global acclaim, this is the third-highest record of Bollinger Band tightening. Interestingly, in the previous records of such occurrences, the price of Bitcoin surged significantly over twelve months.
#Bitcoin Bollinger Bands are crazy tight by historical standards.
Only two other months in history have we seen the weekly Bollinger Bands so compressed: April 2016 and July 2023.
During both of the previous episodes, Bitcoin prices rose significantly over the following twelve… pic.twitter.com/hBb8d73SGc
— Julien Bittel, CFA (@BittelJulien) July 19, 2024
A peep into the historic records of Bitcoin suggests that a rally is imminent with prices likely to hit the $140,000 mark. Other analysts predict that Bitcoin price could soar as high as $190,000 in this cycle of the Bollinger Bands squeeze.
This pattern aligns well with Bernstein analysts who are optimistic that despite the strain in the Bitcoin market, the digital asset could still jump to its predicted $200,000 target. As per Gautam Chhugani and Mahika Sapra’s forecast though, the $200,000 price mark will be attained by the end of next year.
The “Banana Zone,” What Is It?
Meanwhile, Bittel has advised investors to disregard the sluggish trend in the broader crypto market, particularly the poor indices registered in the second quarter of 2024. According to him, “Now is not the time to be complacent. This is The Boring Zone… What comes next is The Banana Zone…”
In one of his financial educations to followers, renowned author of “Rich Dad Poor Dad,” and influencer, Robert Kiyosaki commented on the Bitcoin “Banana Zone” concept. Kiyosaki, using his personal experience with Bitcoin described the Banana Zone as when Bitcoin takes off on a parabolic trajectory and most investors regret not acquiring more Bitcoin as the price begins to soar.
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