Bitcoin (BTC) has no more than 10 days before fresh BTC price volatility hits, new analysis concludes.
In a post on X (formerly Twitter) on Feb. 7, popular social media trader HornHairs flagged a rare signal involving the Bollinger Bands volatility indicator.
Trader anticipates “huge move” for BTC’s price
Bitcoin may have traded within a compact intraday range for over 150 days, but a new chart signal suggests that change is afoot.
Bollinger Band Width (BBW), which measures the difference between the three standard deviation bands commonly used in the Bollinger Bands volatility indicator, has hit lows that historically resulted in a “huge move” on BTC/USD.
BBW width rarely decreases to the levels currently on display — and each occurrence has led to a snap BTC price “squeeze.” The issue, however, is that its direction remains unknown.
“We probably have 10 days MAX before a huge move on BTC,” HornHairs wrote in accompanying commentary.
“Now’s the time to get your plan ready for either direction, don’t want to be stuck in a frozen panic with no plan if things launch upwards or nuke lower. Its coming very soon.”
Bollinger Bands as an indicator has frequently alluded to periods of volatility over the past months, with its bands narrowing to levels that have rarely appeared in Bitcoin’s lifetime.
On daily timeframes, BTC/USD is currently acting in an area between the midpoint and upper bands, seeking a new impulse, data from Cointelegraph Markets Pro and TradingView shows.
Bitcoiners play the waiting game
As Cointelegraph continues to report, frustration with the lack of progress on BTC/USD is compounding ahead of the April block subsidy halving.
Related: ETH price may repeat $2.7K January spike as Bitcoin cools — Analysis
BTC price prognoses include a trip beyond $60,000 before the halving hits, while more conservative guesses nonetheless see price discovery entering before the end of 2024.
Macroeconomic instability, especially tied to the United States regional banking sector, is also responsible for downside predictions, these focusing on an area with $30,000 as a floor.
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.