John Bollinger, known for his expertise in market analysis, recently shared his insights into Bitcoin's current market trajectory, noting that the major cryptocurrency is showing "signs of strength." This observation occurs when Bitcoin consistently makes new highs in an ongoing bull run.
The asset experienced a surge, climbing above $44,000, up 4 in the last 24 hours5%。Now it looks like it's aiming for the next resistance level.
John Bollinger, creator of the famous Bollinger Bands, a popular technical analysis tool, applied his method to gauge Bitcoin's market movements. Bollinger Bands are often used to measure the volatility of a financial instrument.
They consist of a median band, a simple moving flat**, and two standard deviation lines. These ranges adjust according to market conditions, widening during periods of volatility and narrowing during periods of calm.
Recent analysis of Bollinger Bands has highlighted that Bitcoin is trading beyond the daily and weekly Bollinger Bands. This is particularly noteworthy, as it indicates that the current bullish trend will continue strongly without any signs of divergence.
On November 21, two reversal patterns appeared in the middle of the Bollinger Bands, further strengthening the strength of Bitcoin's movement.
The air here has become a little thinner, but what we see now is only a sign of strength. We are located outside of the daily and weekly BB line and there are no disagreements. The last control pattern is the 2-bar reversal of the middle BB that was completed on November 21st. $btcusdBitcoin's bullish momentum continues unabated, surging nearly 5% over the past 24 hours, breaking above the $44,000 threshold. Interestingly, cryptocurrencies show no signs of slowing down or immediate**.John Bollinger (@bbands) December 5, 2023.
However, larger-scale technical analysis suggests that Bitcoin may be approaching an important area. On the one-week timeframe, the order block appears between the $48,000 and $50,000 areas.
tradin**iew.Bitcoin (BTC) on com* is ** in the order area to the $48,000 and $50,000 areas.
An order block is essentially an area where a large number of or selling has occurred in the past and caused a large amount of volatility. When these blocks are revisited, they often act as key levels for a potential reversal or trend continuation.
If Bitcoin climbs to this area, it could happen. However, invalidating that order block and continuing** could set the stage for a reversal, possibly when it reaches a breakout block near the $60,000 area.
tradin**iew.Bitcoin (BTC) on com is breaking out of the block in the $60,000 area.
A breakout block is a specific ** area where the market has previously seen a sharp reversal or break through resistance or support. These blocks are often seen as potential areas that may undergo significant shifts or change direction. If Bitcoin enters this breach, it could herald another pivotal moment in its trajectory.
Featured** from Unsplash and chart from Tradin**IEW