Bitcoin's recent period of relative calm is poised for a shakeup, with indicators signaling an impending surge in volatility. According to popular social media trader HornHairs, the cryptocurrency market should brace itself for a significant movement in Bitcoin's price within the next ten days.
The Signal for Change
The Bollinger Bands volatility indicator, a staple among traders for gauging market volatility, lies at the heart of this prediction. Specifically, the Bollinger Band Width (BBW) metric, which measures the gap between the Bollinger Bands, has shrunk to levels that historically precede a sharp price movement, known as a "squeeze." This phenomenon is rare, and when it occurs, it suggests a potential for dramatic price changes in either direction for Bitcoin.
HornHairs highlighted this development on X (formerly Twitter), noting, “We probably have 10 days MAX before a huge move on BTC. Now’s the time to get your plan ready for either direction, don’t want to be stuck in a frozen panic with no plan if things launch upwards or nuke lower.
It's coming very soon”.
Uncertain Direction, Certain Movement
While the BBW indicator points to an imminent price squeeze, it remains silent on the direction of the potential movement. This uncertainty underscores the importance of preparedness among investors and traders.
The cryptocurrency has been trading within a narrow intraday range for over 150 days, making the prospect of a significant price shift all the more noteworthy. Speculation about Bitcoin's future price is varied, with some analysts predicting a climb beyond $60,000 before the next halving event.
Trader Alan Tardigrade noted: “What if Bitcoin breaks this Cup with Handle Pattern near the date of Halving (around 2 months later)? The target for this pattern is $130k. In other words, it is the last opportunity for accumulation in these 2 months before it sends above hundred thousands”.
Conversely, more conservative estimates suggest a continuation of price discovery, possibly touching new lows or highs before the end of 2024. Adding to the uncertainty is the macroeconomic landscape, particularly concerns surrounding the United States regional banking sector, which could influence Bitcoin's price trajectory, setting a potential floor at around $30,000.