A New Major Movement is Coming in Bitcoin: The Critical Indicator Says 'Rally May Begin'!
The widening difference between the Bollinger Bands in the price of Bitcoin (BTC) indicates that the market will soon become much more active and a new upward wave may begin.
The Bollinger Bands, an indicator closely monitored by cryptocurrency investors, signal that a significant movement in Bitcoin price is approaching. This technical tool measures market volatility with bands placed above and below the 20-week simple moving average, at a distance of two standard deviations.
When the distance between the Bollinger bands widens, the market typically enters a more active and volatile period. This situation is considered a signal that has been observed many times before major price increases in Bitcoin.
The particularly noteworthy indicator at this point is the MACD histogram. The MACD histogram, derived from the difference between the Bollinger bands, turning positive again is seen as an important signal that market volatility will soon rise.
Transitions of the MACD histogram into the positive region have historically been precursors to significant price increases. In particular, the MACD had given similar positive signals before Bitcoin rallies that occurred at the end of 2020 and the end of 2024.
However, it is important to emphasize that volatility is neutral in direction. Nevertheless, historical data shows that periods when the MACD entered the positive region generally resulted in upward movements.
According to technical analysts, Bitcoin investors need to carefully monitor market movements during such periods. The signal given by the Bollinger Bands and the MACD indicator together is interpreted as a strong clue that BTC may begin a new upward trend.
