Bitcoin trader eyes $63K BTC price for new Bollinger bands 'breakout'
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Bitcoin (BTC) could be set for historic gains thanks to a simple trend line breakout, a popular trader hopes.
In a Twitter discussion on May 5, Titan of Crypto flagged a rare bull signal on the Bollinger Bands indicator for the Bitcoin monthly chart.
Bitcoin price may see inexorable breakout
BTC price action currently impacts sentiment in different ways across various timeframes. While observers are unsure about short-term moves, zooming out, consensus remains that Bitcoin’s upside mostly lies ahead as the block subsidy halving approaches.
When it comes to tracking what comes next, however, it may be enough to look at halving cycles past — specifically, volatility.
As Titan of Crypto notes, Bollinger Bands on monthly timeframes are setting up a repeat of a breakout event that has occurred only once in each cycle.
In the two previous instances shown on an accompanying chart, 2016 and 2019, BTC/USD broke through into the upper section of the Bollinger Band channel to see significant gains.
Bollinger bands are a key volatility indicator across price timeframes. They revolve around a 20-period simple moving average (SMA) functioning as a midline, with two standard deviations above and below representing the channel.
These bands expand and contract with volatility, and certain events, among them price coming into contact with the bands or even breaking beyond them, are often considered important by traders.
Currently, the one-month BTC/USD chart shows price attempting to break above the SMA line, something which, if confirmed, would suggest a classic repeat of past bull runs.
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