Bitcoin (BTC) broke the new ATH by exceeding $126,000 at the beginning of the week, but fell sharply during the week to $121,000.
As investors await a major surge with the arrival of the bullish month of October, one analyst said Bitcoin is at a turning point.
Studying Bollinger Bands, popular analyst Tony Severino concluded that Bitcoin's next move depends on the Bollinger Bands volatility indicator.
According to the analyst, the Bollinger Bands volatility indicator suggests that BTC could make a parabolic rally or end the bull market in the next 100 days.
According to the analyst, Bitcoin Bollinger Bands have reached record tightness, signaling a breakout in about 100 days.
This move could send BTC into a parabolic rally or trigger a correction that ends the cycle.
The analyst said that the record narrowing of the bands will result in a breakout to the upside or downside, but this may not happen immediately and may take more than three months.
The analyst added that currently Bitcoin has not been able to decisively break the upper band level, which has put the market in a waiting position.
“Bitcoin's weekly Bollinger Bands recently reached record tightness.
For now, BTC/USD has failed to break out strongly from the upper band.
Based on past local consolidation ranges, it could take up to 100+ days to see a valid breakout or collapse.”
Finally, the analyst warned that the squeeze on the Bollinger Bands could result in false breakouts, creating false declines or rises before the actual breakout occurs:
“Expanding from such a squeeze environment could lead to false breakouts. We may have seen one in the last move to $126,000 and there could be another one before the real trend emerges.”
*This is not investment advice.