Bitcoin is in an uptrend, but events in the daily chart show pockets of weakness. Though BTC is stagnant, analysts are upbeat, expecting prices to rise in the days to come.
Is Bitcoin Ready To Rip Higher: Analyst Says Bulls Are Eyeing $140,000
Taking to X, one analyst has picked out an unusual development: In the weekly chart, the Bitcoin Bollinger Bands (BB) is currently at their tightest level in history. Besides April 2016 and July 2023 events, the Bitcoin BB is tightening, forming a squeeze.
Related Reading
Since BB is a technical indicator used to gauge underlying volatility, what’s happening now should draw traders’ attention. Specifically, prices tend to explode within the next few sessions whenever BB forms a squeeze, compressing to what is now.
However, traders should also know that the direction of breakout can be in either direction. In the past, Bitcoin prices rose higher. To illustrate, after the BB squeeze in July, the coin went on to fly in the coming months, breaking $70,000 by March before the coin rose to $73,800.
If the past guides, and indeed, prices explode at the end of this squeeze, the analyst predicts Bitcoin flying to $140,000 and even $190,000 in the next few months.
The expansion would be a welcomed boost for bulls, considering that prices are now in what the analyst described as a “boring zone.”
Any uptick above $73,800 and all-time highs, pushing BTC to six-digit levels, would automatically be in the “banana zone.”
Spot BTC ETF Issuers On A Buying Spree, Donald Trump’s Endorsement
The confidence that Bitcoin will rip higher is also due to fundamental factors. Despite the current price lull after the refreshing surge earlier this week, spot Bitcoin ETF issuers are buying.
BlackRock is spearheading this buying spree. Records show that the asset manager bought over $1 billion of BTC in July.
On July 18, one observer noted that they bought 18,600 BTC, or $107 million worth of the coin, on behalf of their clients. According to SosoValue, as of July 19, BlackRock’s IBIT manages over $20 billion worth of BTC.
Related Reading
Moreover, adding fuel to the fire, it is speculated that if Donald Trump wins the United States presidency, his administration might consider BTC a strategic reserve. While this possibility is debatable for now, it highlights the growing interest from policymakers, which is a massive boost for crypto.
Feature image from DALLE, chart from TradingView
#BTC #Ready