On the 4hours time frame, to analyse the price chart of BTCUSD the use of Bolinger bands will be used to analyse the possible price breakout of move.
Bands are tight or what is called BB squeeze. The Squeeze occurs when falls to low levels and the narrow.
This indicates a periods of low are often followed by periods of high . Therefore, a contraction or narrowing of the bands can foreshadow a significant advance or decline. Once the squeeze play is on, a subsequent band break signals the start of a new move. A new advance starts with a squeeze and subsequent break above the upper band. A new decline starts with a squeeze and subsequent break below the lower band.
There are two bands(upper band and lower band) and (by default) a 20-day (the red MA inside). The two bands are the two standard deviations.
The upper and lower bands are then set two standard deviations above and below this moving average. The bands move away from the moving average when expands and move towards the moving average when contracts. More to this is the Band width with is right at 0.01, and traders should be read for price .
More likely to move down than up as price is right below the 20-day . Levels to keep an eye on are as follows:
Support 1- $10227.94
Support 2- $10158.88
Support 3- $10072.39
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Ideas published should not be referred to as an investment advice.