Data shows that BTC price action is preparing to repeat a rare Bollinger Band breakout that only happens once per halving cycle.


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One popular trader is hoping it could post historic gains thanks to a simple trendline break.

In a tweet on May 5, the crypto titan flagged a rare bullish signal on the Bollinger Bands indicator on Bitcoin’s monthly chart.

Bitcoin price could see ‘unstoppable breakout’
BTC price action is currently affecting market sentiment in different ways on different time frames. While observers are unsure of near-term trends, the consensus remains that Bitcoin’s upside is mostly up front as the subsidy halving approaches.

However, it may be sufficient to look at past half-lives, especially volatility, when looking at what’s coming next.

As noted by Titan of Crypto, Bollinger Bands on the monthly time frame repeat breakout events that only happen once per cycle.

In the first two cases shown in the accompanying charts in 2016 and 2019, BTC/USD broke out of the upper part of the Bollinger Bands channel, making significant gains.

Bollinger Bands are a key indicator of price time frame volatility. They revolve around a 20-period Simple Moving Average (SMA) that acts as a midline, with two standard deviations above and below representing channels.

These bands expand and contract with volatility and certain events: among them, price touching the band or even breaking the band is usually considered important by traders.

Currently, the BTC/USD one-month chart shows the price attempting to break above the SMA line, which if confirmed would suggest a classic repeat of past bull markets.

In a review, Titan of Crypto described it as an “unstoppable breakthrough”.

“BTC is about to breach its monthly Bollinger Band baseline. When that happens, the first target will inevitably follow,” he added.

“This would stabilize bitcoin at $63,500.”

BTC/USD Annotated Chart. Source: Titan of Crypto/Twitter
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While not enough to reach current highs, the price target could be about halfway there in a year. How long it will actually take remains to be seen, the crypto titan admitted.

BTC price waits for an opportunity
Last month, the band’s founder, John Bollinger himself, claimed that Bitcoin is at a critical juncture on the daily time frame.

Related: Is Bitcoin Overbought or Oversold? Use Bollinger Bands to find out!

At the time, the price was retesting the SMA line as support, breaking it. However, data from Cointelegraph Markets Pro and TradingView show that it is now headed higher.

BTC/USD (Bitstamp) 1-day candlestick chart with Bollinger Bands. Source: TradingView
Later, CryptoCon analysts stated that the recent Bollinger Band norm remains intact despite Bitcoin’s pullback from local highs of $31,000.

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This article does not contain investment advice or advice. Every investment and transaction involves risks and readers should do their own research when making a decision.

Source: CoinTelegraph