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AlanSantana
Dec 5, 2020 2:25 PM

Bitcoin Bollinger Bands | Weekly & Monthly 

BITSTAMP:BTCUSD1D
Bitcoin / U.S. dollarBitstamp

Description

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I just remembered the Bollinger Bands and decided to look at this indicator for Bitcoin on the monthly and weekly timeframe.

I've shared a bearish perspective on both timeframes.

Here we start with the monthly chart for BTCUSD... Notice the bands:


The current price for monthly BTC is outside the upper band... This can signal of an upcoming drop.

Now, let's look at it weekly.


Here, BTCUSD is still within the band but right at the edge of the upper side, so the stronger signal is coming out of the monthly chart.

In conclusion, this indicator is showing us the potential for a correction to take place.

This is just one indicator and additional signals are needed to support this one.

Time will tell though but we are surely seeing some mixed signals develop on the higher Bitcoin timeframes.

Thanks once more for taking the time to read.

Namaste.
Trend AnalysisTechnical IndicatorsBeyond Technical Analysis
Comments
Yuriy_Bishko
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all market is waiting for movement.
BulloTaurus
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Hey Allan! Nice to see traders using Bollinger Bands when trading cryptocurrencies .

I should also start using them in my analysis , they seem to show very nicely when its overbought and reach temporary top.

The recent Bitcoin dip was a must have for more upwards movement.

What is your opinion about Bollinger Bands ? How useful do you find it in analysing crypto?

Peace.
AlanSantana
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@BulloTaurus, It can be used as an extra tool on the longer timeframes in my opinion.

I hardly ever use them because we have so many tools already... But here they help give additional info on the monthly.

Base on this indicator it is clear to see the upcoming monthly retrace/correction.
BulloTaurus
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@alanmasters, Thank you for fast response!
AlanSantana
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@BulloTaurus, It is my pleasure.

Thank you for the support.

Namaste.
Protixder
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AlanSantana
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@Protixder, Let's hope Bitcoin does a "Bitcoin" and ignore all signals and continue higher... That would be the best possible scenario.
NewWave_Traders
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Very interesting, thanks for sharing!
AlanSantana
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@NewWave_Traders, My pleasure.

Thanks for your comment.

Namaste.
dragansimic171111
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Thanks
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