- Bitcoin price Bollinger Bands are at their tightest in two years, signaling a potential breakout and possible $130,000 target.
- A previous Bollinger Bands contraction in 2023 led to Bitcoin’s surge from $30K to $42K could history repeat.
- Crypto analyst predicts a mild correction before Bitcoin price pushes toward new highs, with $130,000 in sight.
Bitcoin price is at a critical juncture as the Bollinger Bands indicator signals the tightest setup in nearly two years. With this rare pattern, many analysts are predicting that a sharp price move could be on the horizon, possibly pushing Bitcoin price to new highs, with some eyeing a potential target of $130,000.
Bitcoin Bollinger Bands Signal Potential for Major Price Move
In a recent X post, Coin Bureau CEO Nic Puckrin emphasized the importance of the Bollinger Bands in predicting Bitcoin price next move. He shared a chart showing Bitcoin Bollinger Bands tightly coiled, the narrowest they’ve been in nearly two years. Puckrin noted that the tightening of these bands often signals a potential price shift, with Bitcoin price possibly poised for a significant rally.
The Bollinger Bands are a key tool used to assess market volatility. When the bands contract, it indicates a reduction in unpredictability, which could lead to more pronounced price movements. Puckrin pointed out that similar setups in the past have often preceded substantial price increases.
Source: Nic Puckrin/ X
Historically, a similar pattern occurred in July 2023, when Bitcoin price was around $30,000. By December, it had surged to $42,000. With the current tight band setup, analysts are hopeful that Bitcoin could reach new highs, possibly even targeting $130,000.
Crypto Market Cooling Signals Potential Short-Term Correction
CryptoQuant analyst Crypto Dan highlighted a cooling phase in the crypto market, suggesting that Bitcoin price may face a mild correction in the short term. The market, which recently experienced intense price increases, is transitioning into a more stable or declining phase. Crypto Dan noted that the degree of overheating has significantly decreased compared to earlier peak levels.
He anticipates that this cooling phase will be shorter and less severe, following Bitcoin price recent moderate increase. Such corrections are typical after periods of rapid growth, and they often create the best entry points for investors. In previous cycles, a moderate pullback was followed by re-accumulation, setting the stage for an upward trend.
Source: CryptoQuant
Crypto Dan believes that this correction could serve as a healthy reset before Bitcoin price resumes its upward trajectory. If the pattern continues, Bitcoin price may eventually push toward new milestones, with $130,000 potentially on the horizon.
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