Bitcoin Bollinger Bands indicate Imminent Rise in Volatility: Here's Why
The volatility in the Bitcoin market has been on the fall of late. The current reading of 2.66% depicts that Bitcoin volatility is roughly half of what it was in the latter half of June. As a result, the price of the largest crypto asset remains to be stagnated at around $19k. Source: CoinGlass In fact, the state of the Bollinger Bands echoed the same narrative. A recent analysis by Bloomberg brought to light that the width between the said bands has shrunk to its narrowest since 2020. This technical Analysis indicator gauges volatility by measuring the gap between the upper and lower bands . Per the thumb rule, when the bands are far apart, volatility is high in the market. Contrastingly, when they are close together, volatility is low. Periods of low volatility are generally followed by high volatility and vice versa. The width between the bands has been this narrow around five other times in the past two years. In four instances, Bitcoin ended up shedding almost 16% ov...
