Bitcoin has almost hit the ceiling, according to this indicator

  • Bitcoin is approaching the middle line of the Bollinger band, coinciding with the resistance area at $ 7,800.

  • As history shows, the price has every chance of reaching this level..

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In April, bitcoin was actively strengthening, adding almost 20% in price. However, now the price is approaching an important resistance level, which previously managed to reverse the trend..

As a rule, when trying to predict further price dynamics, traders most often use trading instruments such as moving averages and the RSI index. However, Bollinger Bands are not far behind them in popularity. Cryptocurrency trader and technical analyst Cryptotoad (@ Mesawine1) recently shared a bitcoin chart on Twitter, which he analyzed using Bollinger Bands..

He noted that the BTC rate rarely reverses before reaching the middle line of the Bollinger Band (moving average), which now passes near $ 8,000. In this regard, he expects the growth of BTC to the $ 8000 region and a subsequent decline.

$ btc update:

Weekly middle BB also near the 8k target.

How often has PA just turn mid flight without making it to the middle BB?

Not saying it can’t. Just saying it’s all about probability. # Btc #bitcoin #crypto

– Cryptotoad (@ Mesawine1) April 7, 2020

Can cryptocurrency reach this level? Let’s try to figure it out.

Bollinger Bands

On March 12, the bitcoin rate briefly dipped below the lower border of the Bollinger Band, after which it reversed a bearish trend. Since then, the price has strengthened and almost reached the median line (MA).

Bitcoin has almost hit the ceiling ...

It is further strengthened by the $ 7,800 resistance area located in the same area..

Previously, the market reached these levels twice – in January 2020 and October 2018. Both times after that the price declined, but in January it finally managed to move higher.

Previous dynamics

According to a comment in a tweet, it is very rare for the price to start declining without even touching the median line. Analysis of price dynamics in 2018 confirms the veracity of this statement..

The bitcoin rate rushed from below to this line four times.

Bitcoin has almost hit the ceiling ...

Of these, three times the price managed to reach it or even exceed it, and only after that the market began to decline. The only exception was on April 30, when the rally choked 3% below the median line.

This suggests that bitcoin has every chance to grow to this mark, which is now in the $ 7,800 region, and, perhaps, even look above it..

Thus, the BTC rate has been strengthening throughout the last week..

Bitcoin has almost hit the ceiling ...

The likely area of ​​completion of this growth may be the $ 7800 area, where the resistance area and the middle line of the Bollinger Band converge..


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