Bitcoin Indicator Suggests A BTC Breakout Incoming, Bloomberg Says
Bitcoin has been very volatile, and it seems that this could get even crazier.
You probably already know that Bitcoin dropped a lot yesterday, and now the crypto market is in the middle of a blood bath with all of the most important crypto trading in the red.
Bitcoin is no exception, and at the moment of writing this article, the most important digital asset in the crypto market is trading in the red, and BTC is priced at $7,452.00.
Bitcoin is about to break out
The Trading Envelope indicator tracks upper and lower bounds to determine when assets are overbought or oversold, and this indicator is suggesting that Bitcoin is about to break out.
Bloomberg says that the direction of the breakout is not very clear and that the last time this indicator was in a similar spot, BTC 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,” according to Bloomberg.
The online publication also explains that “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 makes a prediction
Analyst Josh Rager also says that big moves are approaching.
It seems that in order to maintain any momentum, Rager says BTC bulls need to keep the leading currency above $8,056.
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
“6% move over the past day, the 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.”
So far, despite the huge volatility of the crypto market, there have also been some optimistic predictions made in the crypto space as well.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.