- Three bullish targets
- Plunging volatility
Legendary technical analyst John Bollinger believes Bitcoin (BTC) could be on the verge of a run to six figures.
In a Monday post on X (formerly Twitter), the creator of the widely used Bollinger Bands volatility indicator mentioned a “near perfect base” for the BTC/USD pair.
According to Bollinger, the asset is currently undergoing a “Bollinger Band Squeeze”. This is known as a period of low volatility that typically precedes a sudden, sharp move.
The leading cryptocurrency is currently showing some signs of a breakout.
Three bullish targets
Bollinger outlined clear resistance levels for Bitcoin bulls to watch now that the ball appears to be back in their court.
The first target is $100,000, while the second is $107,000. Meanwhile, the third target is unknown, according to Bollinger, which possibly implies that the leading cryptocurrency could challenge a new all-time high.
However, a failure to sustain this momentum and push Bitcoin back into six-figure territory could possibly lead to a deeper correction. “If we fail here, it is back into the trenches,” Bollinger warned.
Plunging volatility
The bottom pane of Bollinger’s chart displays the “BandWidth” indicator, which measures volatility.
The line recently dropped to a multi-month low (marked “Squeeze”). This indicates that the market had coiled into an extremely tight range.
Extended periods of low volatility are often precursors to high-volatility expansions.
Bitcoin has now pierced the upper Bollinger Band (the red wavy line on the main chart). Simultaneously, the %B indicator in the middle pane, which tracks price relative to the bands, has surged above the 1.0 level (marked “Breakout”). This shows that there is indeed rather strong bullish momentum.