DailyCoin Bitcoin Regular: Very Tight Bollinger Bands Signal $190K Goal
- Bitcoin analysts have stayed bullish despite fluctuations.
- A bullish Bitcoin historical cross has signaled a potential surge.
- Narrowing Bollinger Bands on the BTC chart have hinted at a parabolic rally.
Bitcoin remains a beacon of both opportunity and uncertainty. As the digital gold seeks to find its footing amid a tumultuous market, the cryptosphere buzzes with speculation and intrigue. Recent developments have set the stage for a dramatic shift, with pivotal events unfolding that could shape Bitcoin’s trajectory in the coming weeks.
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This Bi-Weekly DailyCoin Bitcoin Regular, compiled by our expert Kyle Calvert , dives into recent developments and the ongoing tug-of-war in the Bitcoin market. We unpack the price action, countered by long-term holder selling. We’ll also explore analyst predictions, ranging from potential support levels to a bullish breakout.
News and Events
Bitcoin Mining Struggles Despite High Prices
Bitcoin mining profits are at rock bottom despite record high Bitcoin values. Increased competition and a surge in computing power have squeezed margins for miners. This raises concerns about the future of mining and the potential centralization of the network. Only the most efficient miners are likely to survive.
Germany Finishes Their Bitcoin Sales
Germany sold all its confiscated Bitcoin (50,000 BTC ) over the past few weeks. This bearish news for Bitcoin may be ending as analysts believe Germany’s selling pressure has stopped. Bitcoin investors are mocking Germany’s decision to sell, while some analysts view the current price as a good entry point for new investors.
Mt. Gox Begins Long-Awaited Bitcoin Repayment
After nearly a decade, Mt. Gox started distributing Bitcoin and Bitcoin Cash to creditors. This follows a series of Bitcoin transfers, including a $2.7 billion chunk, sparking concerns of market pressure. The move marks a significant moment for the crypto industry, finally resolving a chapter that began with Mt. Gox’s collapse in 2014.
Experts Forecast
Bitcoin analysts are bullish despite a recent price pullback. Following a 10% weekly rally, analysts like Negentropic from Glassnode point to key resistance levels flipped into support, including the 200-day EMA and $62,600 zone.
BTC's push higher continues!
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) July 18, 2024
Despite a lot of Bearishness 2 weeks ago – and a large supply of BTCs – #Bitcoin has rallied ~21% since the low on Friday, July 5th
Various technical levels have been broken in a Bullish manner – and RSI has broken downside Momentum after Bullish… pic.twitter.com/JLPulKpHx6
Scott Melker, also known as “The Wolf Of All Streets,” sees positive signs on shorter time frames, while Moustache, an anonymous analyst highlights a rare monthly bullish cross in the Bitcoin historical index, potentially foreshadowing a parabolic uptrend similar to 2017.
#Bitcoin
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) July 18, 2024
It's been almost 8 years since $BTC last saw this bullish cross.
After that, we saw the 2017 bull run.
Do what you want with the information, I'm just saying it happened again.👀🔥 pic.twitter.com/hhImZ4f64f
While the price touched $66,000 on July 17, it has settled just under $65,000. Chartered market technician Aksel Kibar views this resistance as a bullish long-term sign, suggesting a potential breakout.
This is the 5th month $BTCUSD is not backing off from the strong resistance around 65K. I see this as very bullish long-term.
— Aksel Kibar, CMT (@TechCharts) July 18, 2024
Sticking to a resistance and no intention of selling off is usually a sin of pending breakout. pic.twitter.com/9ajs8yAy07
Data from IntoTheBlock’s IOMAP model reinforces this view, indicating strong buying pressure around the current price. Overall, technical analysis suggests Bitcoin may be primed for further gains.
Current Outlook
Bitcoin bulls are back in the saddle, citing a key technical indicator pointing towards a significant price increase. The cryptocurrency is currently trading around $64,000, up 12% from the previous week, fueled by tightening Bollinger Bands – a popular indicator for measuring volatility and price trends.
The current “squeeze” in the Bollinger Bands, with the upper and lower bands narrowing significantly on weekly charts, has historically been a bullish signal for Bitcoin. On two previous occasions, similar constrictions preceded substantial price increases over the following year.
This isn’t the first time the Bollinger Bands have hinted at a Bitcoin rally in the ongoing bull market. In late 2023, a similar squeeze foreshadowed the surge to local highs that coincided with the launch of the first US Bitcoin ETFs .
However, despite the bullish technicals and rising trader confidence, caution still remains. The current market sentiment lacks the frenzy of mainstream retail investor participation that typically characterizes a full-blown bull run. This stands in contrast to the current accumulation trend observed from institutional investors and large holders, often referred to as “whales.”
On the Flipside
- While historically a bullish indicator, a tighter squeeze can also precede significant price drops if the breakout goes downwards.
- The lack of mainstream retail investor participation could dampen the potential upswing, as their buying fervor has historically fueled major bull runs.
- The historical index’s rare bullish cross is a singular data point and might not be a guaranteed precursor to a parabolic uptrend.
Why This Matters
The current technical indicators for Bitcoin, including the Bollinger Bands squeeze and strong support levels, suggest that the crypto could be on the verge of significant price gains. This bullish outlook is reinforced by historical patterns and current buying pressures, which could lead to a robust uptrend and impact the broader market by attracting further interest.
To learn more about the recent surge in Bitcoin ETF inflows and its impact on the market, read here:
BTC Rockets 11% Higher as Bitcoin ETFs See Whopping 422M Inflow
To learn more about the recent decline in Bitcoin’s price and the role of the Mt. Gox outflow in it, read here:
Mt. Gox Bitcoin Hack Still Plagues Market: $6B Shift Sinks BTC
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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