According to Bloomberg, the tighter Bollinger bands suggest that Bitcoin is consolidating for a major breakout.
The latest report by Bloomberg analyst Mike McGlone claims that Bitcoin is consolidating. He speculates that due to decreased volatility, the price of Bitcoin Bollinger Bands is at its lowest point.
In his opinion, Bitcoin is preparing to break out of the resistance level above $ 13,000. At the same time, he believes it is critical that the price does not drop below $ 6,500:
“Our chart shows the 260-day moving average with an upward slope in cryptocurrencies and the bands that marked approximately the maximum of 2019 and the minimum of 2020 as a guide. By this measure, when Bitcoin escapes from its cage, around $ 13,000 would be a good target for initial resistance. Staying below the lower band at about $ 6,500 would jeopardize the uptrend. ”