Bloomberg: Key Bitcoin Indicator Suggests BTC Breakout Incoming
Bitcoin’s trademark volatility may be about to return in a big way.
The Trading Envelope indicator, which tracks upper and lower bounds to determine when assets are overbought or oversold, suggests Bitcoin is poised to break out.
According to Bloomberg, the direction of the breakout is unclear, but the last time the indicator was in a similar spot, BTC soon moved to the downside.
“The difference between Bitcoin’s upper and lower band in the Trading Envelope indicator is at its narrowest since mid-September.
The gauge smooths moving averages to map out higher and lower limits and a similar narrowing last month preceded a drop of more than 12% for Bitcoin on September 24th.”
Analyst Josh Rager is also seeing signs that a big move is on the horizon.
Bbands pinching here, could only be a matter of days until the next volatile move pic.twitter.com/9qOk8LvzTb
— Josh Rager 📈 (@Josh_Rager) October 21, 2019
To maintain any momentum, Rager says BTC bulls need to keep the leading currency above $8,056.
“6% move over the past day, price failed to close above the monthly open.
Price wicked up to the POC (point of control, price level where the most volume traded in this range) and has now pulled back. Want to see price hold level below (green) or BTC will head back down.”
At time of publishing, Bitcoin is up 0.55% at $8,226, according to CoinMarketCap.