Key Points:
The Bollinger Bands indicator for BTC has reached a critical bullish turning point.
The cup and handle pattern target for BTC points to $300,000, supported by multiple bullish factors.
The BTC indicator used by traders to assess volatility has reached a critical turning point, indicating that significant price movements may be imminent.
Cryptocurrency trader and analyst Matthew Hyland noted that the BTC Bollinger Bands—a tool that measures asset momentum and volatility within a specific range—have reached their "most extreme level" in the monthly timeframe since its inception in January 2009.
He is not the only trader to notice this emerging pattern.
Renowned analyst Crypto Ceasar stated, "The Bollinger Bands on the 1M (monthly) are at historical tightness." He further pointed out:
The Bollinger Bands on the 1M (monthly) are at historical tightness. This has previously led to heavy volatility to the upside (see chart). Bitcoin could be in for a spicy Q4 🐂🫡 pic.twitter.com/sOmeLIYPgT
Cryptocurrency investor Giannis Andreou mentioned in a post on the X platform last week that the previous contractions in 2012, 2016, and 2020 "foreshadowed explosive price expansions," adding that the current setup is tighter, indicating that BTC prices could experience the largest movements ever.
According to Cointelegraph, a squeeze phenomenon on the three-day chart in early July indicated that BTC broke through to its current historical high of over $124,500 on August 14.
As Cointelegraph continues to report, despite the recent failure to stabilize above $112,000, several factors are creating favorable conditions for BTC to gain more upward momentum.
In addition to the upcoming Federal Reserve interest rate cuts and bullish on-chain indicators, BTC may follow gold's upward trend, regaining momentum towards $185,000 and higher.
The ongoing institutional demand through spot Bitcoin ETFs and treasury companies further strengthens BTC's upside potential, with inflows into spot Bitcoin ETFs turning positive on Monday.
Market intelligence firm Santiment noted in a post on the X platform on Wednesday, "As retail investors impatiently exit the crypto market, funds are rapidly flowing back into Bitcoin ETFs." The company also added:
The monthly chart shows that BTC price broke through the cup and handle pattern's neckline at $69,000 in November 2024. BTC is currently still validating this breakout and may rise to complete the maximum distance from the cup bottom to the neckline.
This sets the price target for the BTC cup and handle breakout in 2025-2026 at approximately $305,000, an increase of over 170% from current price levels.
However, it is important to note that the cup and handle pattern does not always guarantee the full realization of the upward target. Research by veteran analyst Thomas Bulkowski found that only 61% of such patterns achieve their expected targets.
According to Cointelegraph, BTC is currently in the adjustment phase of a classic bull market cycle after reaching an all-time high, potentially bottoming around $104,000 before starting a new upward trend.
Related: Bitcoin (BTC) falls due to weak U.S. employment data, but is still expected to rise to $185,000 in Q4.
This article does not contain any investment advice or recommendations. Any investment and trading activities involve risks, and readers should conduct their own research before making decisions.
Original article: “Analyst: Bitcoin (BTC) Bollinger Bands Indicator Reaches ‘Extreme Level,’ Suggesting Price Could Explode to $300,000”
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