Bitcoin/USD: reduced volatility results in a rally

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
There have been four previous occasions when the volatility of Bitcoin has been this low (as measured by the width of Bollinger bands ) on Bitcoin /USD. In all four cases, the subsequent price movement was upwards. In the chart below, the oscillating line shows Bollinger band width. The lower the reading, the tighter the Bollinger bands . This is consistent with Bitcoin undergoing a consolidation period.