- BTC price is near $30,000 and the bulls may struggle to defend it.
- Bitcoin’s historical volatility will reach its lowest level in 2023.
- A short-term bullish target is likely above $34,000, while the main support is near $28.2,000.
Bitcoin’s price is still above $30,000 as of Monday, but with “notably low volatility.” A key technical analysis indicator for this indicator suggests that the price is tightening and a breakout in either direction is likely to be large.
Bitcoin Price Outlook: Bollinger Bands
According to on-chain data and analytics provider Glassnode, the Bollinger Bands are tightly squeezed, with only 4.2% separating the upper and lower ends of the price range. The platform notes that the outlook has put Bitcoin in its quietest state since early January.
“The digital asset market remains remarkably low in volatility, with the classic 20-day Bollinger Bands under extreme pressure. Only 4.2% separates the top and bottom of the Bollinger Bands, making it the quietest #Bitcoin market since his early January lull.Analyst at Glassnode tweetedshare the chart below.
In technical analysis, the Bollinger indicator provides a chart outlook where price trends reflect market volatility. Traders use this indicator to identify overbought or oversold market conditions.
Bitcoin recently broke out of the upper band and is currently trading below the middle trendline. The lower support of the Bollinger Bands is near the critical $30,000 level.
BTC price fell from a late Sunday high of $30,400 before hitting an intraday low of $30.079 on Monday morning, according to data. Currently at around $30,180, the top cryptocurrency by market capitalization is down about 0.5%.
The accumulation near the current prices is impressive, but the bulls need to stay above this psychological support base. If not, the bears could first push the lower side before a short squeeze can push BTC/USD to new year-to-date highs of $34,000. The key downside levels to watch in the short term are $28,200 and $25,600.