Bitcoin volatility has been extremely low recently. I don’t normally use Bollinger Bands, but have put them on the chart simply to show a visual representation. When the band is narrow, volatility is low, which forecasts a large impulse move is coming. And it can be seen from this daily chart of BTC, that the bands are indeed squeezing tightly.
We also have the market structure that BTC has been respecting coming into play this week. This impulse move will either come as a continuation of the market structure, or a breakdown of the market structure.
Bitcoin volatility has been extremely low recently. I don’t normally use Bollinger Bands, but have put them on the chart simply to show a visual representation. When the band is narrow, volatility is low, which forecasts a large impulse move is coming. And it can be seen from this daily chart of BTC, that the bands are indeed squeezing tightly.
We also have the market structure that BTC has been respecting coming into play this week. This impulse move will either come as a continuation of the market structure, or a breakdown of the market structure.