Bitcoin (BTC) could be set for a historic rally thanks to a simple trendline breakout, popular traders hope.
on twitter discussion On May 5, cryptocurrency Titan showed a rare bullish signal in Bitcoin’s monthly chart’s Bollinger Bands indicator.
Bitcoin price could have a ‘relentless breakout’
BTC’s price action is currently affecting sentiment in different ways on different timeframes.the observer While we’re not sure about the near-term moves, the consensus remains that Bitcoin’s rally is largely ahead as the block subsidy halving approaches.
However, when tracking what happens next, it may be enough to look at past halvings, especially volatility.
As noted by Titan of Crypto, the monthly timeframe Bollinger Bands set a repeat breakout event that occurred only once in each cycle.
In the two previous examples shown in the 2016 and 2019 charts, BTC/USD broke through the upper section of the Bollinger Bands channel and made a significant move up.
Bollinger Bands are an important volatility indicator across price timeframes. They revolve around a 20-period Simple Moving Average (SMA), which serves as the median line, with two standard deviations above and below representing the channel.
These bands expand and contract with volatility and certain events. Among them, the price touching or above the band is often considered important by traders.
The 1-month BTC/USD chart now shows that the price is about to break out of the SMA line, suggesting a classic repeat of past bull markets if confirmed.
Commenting, Crypto Titan described it as a “relentless breakout”.
“BTC is about to breach the monthly Bollinger Bands baseline, and when that happens, the first target will follow relentlessly,” he added.
“That would bring Bitcoin to a solid $63,500.”
While not nearly enough to match current all-time highs, the price target could approach the halving point within a year. Admitted.
BTC price hits its hour
Last month, the band’s creator John Bollinger himself claimed that Bitcoin is at a pivotal point in the daily timeframe.
Related: Is Bitcoin Overbought or Oversold? Use Bollinger Bands to find out!
At the time, the price was retesting the SMA line as a support, breaking it and staying in its range.But now with Cointelegraph Market Pro TradingView indicate.
Analyst CryptoCon then suggested that the lower timeframe Bollinger Bands benchmark remained intact, even as Bitcoin fell from its local high of $31,000.
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This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.
