Bitcoin's Bollinger Bands Squeeze: Will it be a Rebound or a Plunge?
A big move could be just around the corner for Bitcoin (BTC), according to popular analyst Ali Martinez. The Bollinger Bands on a 3-day scale have started squeezing, which typically occurs amid periods of low volatility and has historically been followed by a huge price swing.
This setup has been a precursor to both strong rebounds and violent plunges in the past. In mid-March, for instance, the Bollinger Bands (on a monthly basis) tightened to levels never seen before, only to see BTC plummet from nearly $75,000 to around $65,000 just days later.
The US Federal Reserve will reveal its interest-rate decision on July 29, and many are speculating that this could lead to another Bitcoin sell-off. However, several analysts believe the cycle's bottom has yet to arrive, with some anticipating a drop to as low as $39,000 before the next bull run begins.