Bitcoin’s (BTC) recent price journey has been a small rollercoaster, reaching a peak of nearly $31,500 in mid-July before experiencing a noteworthy drop to just above $29,000.
Market experts, however, remain unperturbed, viewing this correction as anticipated, with the leading cryptocurrency seeming poised for an imminent price breakout as it navigates through its consolidation phase.
After conducting technical analysis (TA) on Bitcoin’s 1-week (1W) chart, crypto analyst Tony “The Bull” said that “something absolutely massive is coming” for BTC.
Notably, the analyst’s remarks come after he noticed that Bitcoin 1W Bollinger Bands – one of the key technical indicators – are “the tightest in its entire existence,” he noted in a July 25 tweet.
What does this mean?
The purpose of Bollinger Bands is to provide an indication of the market’s volatility and to identify potential price breakouts or reversals. When the bands are tight, it suggests that the market is experiencing low volatility, and price movements are relatively constrained within a narrow range.
Moreover, tight Bollinger Bands may signal a period of consolidation or a lack of a clear trend. Traders often interpret this as a potential setup for an imminent price breakout, where the bands expand as volatility increases, indicating the start of a new trend or a significant price movement.
On the other hand, traders might sometimes interpret tight Bollinger Bands as a sign of uncertainty or a period to exercise caution.
Similar to Tony “The Bull”, another crypto market expert, Crypto Rover, also hinted at an imminent price breakout for Bitcoin. However, Rover’s insights are based on a chart pattern known as the falling wedge, which typically signals a bullish reversal in a price trend.
It is formed by two converging trendlines, where the lower line has a steeper slope than the upper line, suggesting a potential price breakout to the upside.
Bitcoin price analysis
At the time of publication on July 26, Bitcoin was trading at $29,191, up 0.14% in the past 24 hours.
Over the past week, the number one crypto coin lost 2.6% of its value, and more than 3.7% on the monthly chart.
Still, BTC’s year-to-date price remains deep in the green territory, up more than 75%.
According to pseudonymous crypto analyst Stockmoney Lizards, Bitcoin is currently mimicking the chart patterns from its previous pre-halving periods that led to a massive bullish price rally for the number one cryptocurrency.
In line with those optimistic expectations, a panel of 29 finance experts expects BTC to end the year at $38,488, suggesting a potential surge of around 30% compared to its current price, according to Finder.com results shared with Finbold.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
