Analysts Fear the Worst as Bitcoin Price Readies to See 20% Breakout

This consolidation has forced the Bollinger Bands, a moving average-based technical analysis tool often used by traders looking for more information about trading ranges and volatility, for Bitcoin to reach extremely tight levels, implying that volatility is on the horizon. Josh Olszewicz, an analyst at industry research and media site Brave New Coin, recently noted that the last time the one-day Bollinger Bands on the Bitcoin chart were this tight, the eventual resolution of all moves always resulted in 20%+ price swings.

On Nov. 14, popular cryptocurrency trader “Salsa” remarked that Bitcoin’s one-day chart “doesn’t look pretty,” drawing attention to the fact that BTC has turned the $7,300 support into resistance, a support-resistance flip that implies bears remain well in control. There’s also Cold Blooded Shiller, a Wyckoff and Renko candle-centric trader which last week said that Bitcoin is in no man’s land, and thus not close to a bottom.

Timeline of Bitcoin