Bitcoin trader eyes $63K BTC price for new Bollinger Bands ‘breakout’

Bitcoin price may see “inexorable breakout”

BTC price action currently impacts sentiment in different ways across various timeframes. While observers are unsure about short-term moves, the consensus remains that Bitcoin’s upside mainly lies ahead as the block subsidy halving approaches.

When tracking what comes next, however, it may be enough to look at past halving cycles, specifically, volatility.

As Titan of Crypto notes, Bollinger Bands on monthly timeframes are setting up a repeat of a breakout event that has occurred only once in each cycle.

In the two previous instances shown on an accompanying chart from 2016 and 2019, BTC/USD broke through into the upper section of the Bollinger Band channel to see significant gains.

Bollinger Bands are a key volatility indicator across price timeframes. They revolve around a 20-period simple moving average (SMA) functioning as a midline, with two standard deviations above and below representing the channel.

These bands expand and contract with volatility and certain events: among them, the price coming into contact with the bands or even breaking beyond them is often considered important by traders.

Currently, the one-month BTC/USD chart shows the price attempting to break above the SMA line, which, if confirmed, would suggest a classic repeat of past bull runs.

Commenting, Titan of Crypto described it as an “inexorable breakout.“

”BTC is about to break its monthly Bollinger Bands base line. And when that happens 1st target will follow inexorably,” he added.

“That would bring Bitcoin to a solid $63,500.”