Bitcoin Technical Analysis: How This Bollinger Band Constriction Could Catapult XBT/USD Past $10,000?
- Bitcoin price is likely to cling to the sideways trading action until a breakout occurs following the Bollinger Band constriction.
- XBT/USD currently holds above the 50-day SMA as well as the Bollinger Band middle curve.
Bitcoin/US dollar perpetual inverse swap contract is dealing with low volatility in the same way as the usual BTC/USD trading pair. Motionless trading has continued to dominate the market for a few weeks now. While support is well embraced above $9,000, recovery is limited with gains becoming unsustainable above $9,300.
Related content: Bitcoin Price Rally To $9,600 Still Imminent As Hash Rate Hits New All-time High In July
At the time of writing, Bitcoin is trading at $9,250 with its immediate downside supported by a confluence formed by both the RSI and the Bollinger Band daily curve. On the upside, the Bollinger Band upper curve is limiting the bulls’ efforts.
The Bollinger Band constriction is at the tightest level since the beginning of the year. In other words, XBT/USD is confined in the narrowest range. The trading is happening in a tight range amid the lowest volatility. Consequently, this could be the right time to buy Bitcoin in anticipation of a rally following a breakout from the tight range.
A wider scope shows that Bitcoin’s technical picture could remain unchanged in the coming sessions. The Relative Strength Index (RSI) is also motionless at the midline. In addition, the Moving Average Convergence Divergence (MACD) is moving sidelong at the mean line.
Read also: Bitcoin [BTC] P2P Volume in Africa and S. America Reaching New ATHs in 2020, Report
XBT/USD daily chart
For now, sideways trading will take precedence. However, traders must trade with the anticipated rally in mind. Following the breakout, the journey past $10,000 is likely to be a quick and smooth one. Trading above the descending trendline resistance would confirm the breakout. Bulls will also have to follow up with increased buying entries to create the right volume to support a rally.
Bitcoin Key Intraday Levels
Spot rate: $9,250
Relative change: -6
Percentage change: -0.06%
Trend: Sideways trading bias
Volatility: Low
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