This is a daily technical analysis of the Coindesk analyst and technician of the approved market Omkar Godbole.
A key indicator suggests that bitcoin
The price could soon become more volatile, which may have led to the highest leg higher in the cryptocurrency.
This indicator is based on the gap between the Bollinger strips, which are volatility strips placed two standard deviations above and below the simple 20-week mobile average of the price of the cryptocurrency.
When the gap widens, this indicates that the market is more active and more volatile – a historically observed phenomenon before significant increase in BTC. When the gap is narrowed, this indicates less activity.
The gap, also known as the Bollinger’s band, could soon widen in a positive sign for bulls, because the MacD histogram linked to the same gap has become positive.
The use of propagation between Bollinger bands as an entry into the MacD histogram generates bull or lowering volatility signals, identifying periods of turbulence and calm. Traders generally use the indicator to detect trend reversals at prices.
The upper shutter posters Bitcoin Weekly Open, High, Low and Close (PER UTC) in Candlestick format. The average component displays the propagation, or the gap between the Bollinger bands, with the MacD linked aside in the lower pane.
The MacD has now overturned positive, indicating a renewed expansion of the propagation or volatility boom in advance. By default, volatility is agnostic, which means that an imminent activity could be optimistic or downward.
That said, a more in-depth examination of the above graph reveals that the previous positive crossings of the MACD (marked by vertical lines) prescribed large bull races, including the price gatherings of the end of 2020 and the end of 2024.
Let’s see if history is repeated.
