According to trading legend John Bollinger, who’s famous for creating the Bollinger Bands indicator, the Bitcoin price could soon experience a major uptick.
In his recent tweet, Bollinger points out that Bitcoin and altcoins are caught in the Bollinger Band (BB) Squeeze. This unique trading setup takes place when an asset becomes less volatile.
$BTCUSD is in a BB Squeeze as are many of the alts. Positive divergences are developing. Awaiting confirmation of a move higher.— John Bollinger (@bbands) September 12, 2019
As reported by U.Today, this is the most stable because has been since May when its price was hovering above the $7,000 level. Bollinger believes that periods of high volatility always come after periods of low volatility, which means that we might see some fireworks in the short-term.
It is worth noting that traders who rely on the Bollinger Band Squeeze also need another basic trading pattern to confirm a break below the upper or the lower band.