Roman, a well-known trader, recently pointed out two traditional technical signs for BTC/USD, raising the possibility that Bitcoin (BTC) is preparing for a big price breakout. According to Roman’s analysis, the weekly chart’s Bollinger Bands and Relative Strength Index (RSI) are important indicators of a possible price spike.
Though many owners were disappointed by the cryptocurrency’s poor June performance, Bitcoin’s long-term prospects are still bright. According to other analysts, Bitcoin is only consolidating below its all-time highs, which is a normal bull market behavior that can last for several months.
But Roman believes that a return to the highs of earlier this year is just around the corner. On June 21, he observed that although many traders are giving up and projecting lower prices, Bitcoin is establishing a third bullish divergence between its price and RSI. He underlined that a period of high volatility is typically preceded by the Bollinger Bands tightening.
“We are now forming a 3rd bullish divergence between Price and RSI while many are capitulating & calling for lower,” Roman stated. “Bollinger Bands are also squeezing tighter – creating that volatility to send without returning.” The preceding chart indicated that as the price made higher lows, the RSI produced lower lows. This combination raises the possibility of impending substantial volatility along with the Bollinger Bands’ narrowing.
