The creation of a strategic Bitcoin reserve failed to meet the expectations that many crypto market participants had. In fact, the main cryptocurrencies ended this week without 10.66% of their original rating.
What’s next for Bitcoin (BTC)? If someone gives you a concrete answer, they will lie.
However, there is at least a way to build expectations, these are indicators, one of which is the Bollinger Band. The popular tool for financial products invented by John Bolinger has long served as a benchmark for all kinds of assets. BTC is no exception.
This indicator, made up of three curves or bands, shows a range of movements that helps traders estimate whether equipment is not sold or sold out. Additionally, it helps identify current biases that are prioritized for assets and identify potential critical price ranges.
Bad and worse
For Bitcoin, paintings drawn by Bollinger Bands are very eloquent and not in a good way. Looking at Cryptocurrency’s daily charts, you can see that Bitcoin is currently packed between the middle band and the lower band that stretches above the $80,411 level.
This situation will result in a further 4% drop in BTC prices to the lower boundary line of the range outlined by Bollinger Band. What can change the situation is whether Bitcoin can rise above the central band at $90,200 in the coming hours.
8% jump in a few hours on Sunday? It can be said that is very unlikely.
Unfortunately, the weekly time frames present a similarly bad picture, but even larger. There, Bitcoin is also between the central and lower bands, the latter now costs $73,000. So, if nothing changes over the medium term, a major scenario with Bollinger Bands is a 12.3% drop in Bitcoin falls weekly.
