Bitcoin, the leading cryptocurrency, could be on the cusp of rallying to the $25,000 level, לויט the Bollinger Bands indicator.
Bollinger Bands is useful for gaining market trends in stocks, crypto and other assets. It comes in handy for traders when there is a need to identify overbought or oversold conditions.
Created by famed trader John Bollinger back in the 1980s, the popular indicator is made up of three lines, with the 20-day simple moving average acting as the middle band.
Prices typically travel between the lower band and the upper band during a period of range-bound trading.
A tag of the upper band might indicate that Bitcoin is ready to break out of the current range and march higher. For now, $25,000 is the key resistance level for bulls to watch.
Bulls have managed to shrug off the bearish Tesla news that briefly pushed Bitcoin below the $23,000 level earlier this week. As געמאלדן דורך יו, the leading e-car maker liquidated 75% of its entire Bitcoin holdings throughout the second quarter of 2022.
At press time, the flagship cryptocurrency is trading at the $23,614 level on the Bitstamp exchange.
The cryptocurrency is likely to experience a bout of volatility next week as soon as the U.S. Federal Reserve official wraps up its July 26-27 meeting and announces the much-awaited interest rate hike decision. A massive 100 basis point rate hike, which has become a possibility because of higher-than-expected inflation, will be bad news for Bitcoin bulls. On the other hand, Bitcoin may experience a mild relief rally if the Fed sticks to a 75 basis point hike, thus adopting a less hawkish stance.
Source: https://u.today/bollinger-bands-indicator-shows-bitcoin-could-be-on-cusp-of-breakout