- Bitcoin volatility hits a 15-month low as buyers prepare for an upswing.
- Bollinger bands consolidation and squeeze could result in a move in either direction.
Bitcoin is trading in a stable range in the first week of October. The largest cryptocurrency by market capitalization is showing the industry that it can be just as stable as the much-publicized stable coins. BTC/USD has been trading sideways since Monday and remained stable above $6,500 while the upside is capped at $6,600.
In fact, Bitcoin’s volatility is currently at a 15-month low. However, fundamentals show that it is primed for gains. The Bollinger, applied to the chart are the best indicators for the next possible movement following the current consolidation and squeeze. While a Bollinger band squeeze and consolidation signal a move in either direction (up or down), this current squeeze is more inclined to an upward swing.
A break above $6,600 will eventually trigger movement above $6,600 towards $6,700. The bearish trendline has been limiting upside movements since the first week of September. It is, therefore, a fundamental level that bulls must focus on for more gains. There are several support areas at $6,500, $6,400 and $6,200. Besides, the rising channel has been very instrumental to the stability this week.
BTC/USD 4-hour chart
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