Tight Trading Range Signals Breakout
Crypto analyst TechDev believes Bitcoin is poised for a significant price explosion. The analyst points to Bitcoin’s tight trading range on the five-day chart, which has reached its narrowest level in eight years. This compression suggests that buyers are nearing sellers’ desired price, leading to a potential breakout.
Bollinger Bands Confirm Volatility
TechDev uses logarithmic Bollinger bands to measure Bitcoin’s volatility. According to the analyst, the current compression is at its highest level in eight years, indicating an imminent historic move.
Breakout to Fuel Rapid Rallies
As the trading range narrows, TechDev anticipates a breakout that will result in steep and rapid rallies. The analyst highlights the BTC versus M1 money supply chart, which recently experienced a “textbook breakout.”
Blow-Off Top Expected
TechDev believes the breakout suggests that Bitcoin will enter a parabolic surge, culminating in a blow-off top similar to previous bull markets in 2017, 2015, and 2013.
Longest Consolidation Ever
The analyst notes that the current consolidation period has been the longest in Bitcoin’s history. The breakout from this consolidation is significant, as it represents the first time since 2017 that Bitcoin has shown impulsive behavior against M1 money supply.
Current Price and Outlook
At the time of writing, Bitcoin is trading at $69,060, up over 1% in the past day. TechDev’s analysis suggests that the cryptocurrency is poised for further gains in the coming weeks and months.
