The Bitcoin Bollinger Squeeze Pattern - you gotta love it!
One of my favorite trading patterns when trading Bitcoin is the so-called Bollinger Squeeze. After prolonged times with lower volatility we usually see a violent breakout to the north or south. You can identify these times with
low volatility easily with the help of plain vanilla Bollinger bands. Whenever the upper and lower band come close to each other it indicates a phase of lower volatility. Once the price then makes a massive move and closes outside of the upper or lower Bollinger Band you usually see a continuation of price movement into that direction for a couple of days. This worked out very well in June where you could have caught the move down from 28000 USD to 17500 USD, it was even more impressive in July 2021 when this breakout pattern correctly forecasted the start of a bull run that eventually led us to 69000 USD in Bitcoin.
Yesterday the price tried to break out to the north but was rejected at the 200 days moving average.
low volatility easily with the help of plain vanilla Bollinger bands. Whenever the upper and lower band come close to each other it indicates a phase of lower volatility. Once the price then makes a massive move and closes outside of the upper or lower Bollinger Band you usually see a continuation of price movement into that direction for a couple of days. This worked out very well in June where you could have caught the move down from 28000 USD to 17500 USD, it was even more impressive in July 2021 when this breakout pattern correctly forecasted the start of a bull run that eventually led us to 69000 USD in Bitcoin.
Yesterday the price tried to break out to the north but was rejected at the 200 days moving average.
Comment:
Seeing a breakout now over 23,000 USD. Should we close here today it is a confirmed long entry with a target somewhere between 26,000 and 30,000 USD.
Trade closed: stop reached:
Position was stopped out at 21,000 USD. The market failed to to continue the breakout, mainly due to the Q2 release of Tesla where they showed that they sold 75 % of their Bitcoin holdings