I wanted to point out an indicator that has been catching my attention recently, and it’s the daily Bollinger Bands. They are essentially a group of moving averages that tightly follow the price of Bitcoin and are great at representing market volatility.
The tighter the bands squeeze and compress around price action, the lower the volatility is in the market during that period of time. Usually, not long after we see tight compression on the Bollinger Bands and low volatility, a strong, volatile directional move occurs in the market.
Now, with that being said, this compression on the Bollinger Bands is the tightest we have seen all bear market, indicating that we are likely to see a strong move occur in the near future.
In my opinion, if we cannot break the $67k macro resistance sooner rather than later, it’s very likely that this major volatility move that the Bollinger Bands are predicting will be a move to create new macro lows. This would also align perfectly with August seasonality being red in bear market years.
I’d highly recommend keeping a very close eye on this chart. I think a big move is coming sooner rather than later.
