The bitcoin course seems to be moving sideways from September onwards. The price has since been moving between 7,100 and 7,800 euros. The price has hardly changed in the last three days. When does the price break out of this zone?
Just up and then back
The chart below shows the price development of recent days. You look at the graph in euros, each candle represents one day. On Friday, October 11, the price seemed to break up, but then it fell back to support of 7,500 euros:
Outbreak inevitable days
A new analysis, a new indicator! Today we are dealing with the bollinger bands for the first time. According to this indicator, there will soon be a major price movement.
First a short explanation about the Bollinger Bands. This indicator consists of three parts:
- The center line is a Moving Average (MA). In this case the 20-day MA
- The top deviates two standard deviations from the center line
- The bottom deviates two standard deviations from the center line
Pfoe, this seems like math.
But you can get important information from this indicator. When the lines come together you call this Bollinger Band squeeze (indicated by the arrows on the graph). If this happens, you can expect a major price movement:
The Bollinger Bands say nothing about the direction of the outbreak. As you can see above it can go both ways.
Support on 100-week MA
On the positive side, the bitcoin rate is still supported by the 100-week Moving Average (MA). You can see that line in orange on the graph. This support is a good sign. When the course found support on that line in 2016, it was the starting signal for the bull market. This can also be the case this time.
What if bitcoin breaks out?
As the Bollinger Bands are getting narrower, it seems that the blue zone is no longer tenable in the short term. Suppose bitcoin makes a big move, what can we think about? We stay nice and objective with two scenarios.
Bullish
If the bitcoin rate rises, we can expect a resistance of around 9,000 euros (red rectangle). This level seemed to be an important support in recent months. It was also an important zone in 2018.
Bearish
But if bitcoin drops, then in the most negative scenario we can expect a decrease towards 5,500 euros (green rectangle). That level was an important support in 2018.
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The time has almost come: the 18 millionth bitcoin will be mined soon. At that time, more than 85 percent of all bitcoin is already in circulation. An important milestone for bitcoin and the network.
And the great thing is: you can win a Ledger Nano S with it! What should you do?
The 18 millionth bitcoin will probably be mined on Saturday 19 October. Guess what time this happens, name hours and minutes.
An example: I think the 18 millionth bitcoin will be mined at 10:38 AM.
Are you closest to it? Then you are the winner! These are the rules:
- Participation from 18 years
- Respond under this article or the video
- Take the Dutch time zone into account (GMT + 2)
The deadline for responding is Friday, October 18 at 6:00 PM.
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