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Bitcoin Set for Explosive Move

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Bitcoin (BTC) is on the verge of a burst in volatility after the Bollinger Bands tightened to the narrowest they have been since 2016. Analyst Matthew Hyland highlighted the similarities in a tweet, noting that this magnitude of tightening last occurred in the period before the great bull-market run in 2017 — which saw Bitcoin rise from $700 to $20,000.

Bitcoin saw a similar tightening of Bollinger Bands in January this year, which resolved to a big move up of around 40%, and signalled the start of a run that has delivered a price rise of 75% so far in 2023.

Bitcoin Price Poised for “Strong Moves”

Bitcoin’s price has been hovering around $30,000 for a month or so, leading to a testing period for both bulls and bears. The direction of the upcoming move remains uncertain, as always, but we can expect a decisive move soon.

Bollinger Bands are a technical analysis tool that consists of a simple moving average (the middle band) and two standard deviation lines (the upper and lower bands) plotted at a distance from the moving average. When Bollinger Bands contract or ‘squeeze’, it indicates a period of low volatility in the market. This contraction is often seen as a potential precursor to a significant price movement, or breakout, as periods of low volatility are typically followed by periods of high volatility. However, while the Bollinger Bands can signal a forthcoming price move, they do not indicate the direction of the move.

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