Bitcoin tests Bollinger Bands breakout as creator flips bullish on BTC
A related MVRV indicator hit overheated levels last seen before bitcoin’s late-2024 push to $100,000.
What to know:
- Bitcoin closed above its upper Bollinger Band for the second time since mid-January, signaling strong upward momentum after a period of unusually tight volatility.
- John Bollinger said one of his investment fund’s proprietary models has turned positive on bitcoin and taken a position following the indicator’s bullish signal.
- Traders are watching whether bitcoin can sustain its break above the upper band to confirm a continued uptrend, as the token trades around $80,484, up about 9 percent over 30 days but still 36 percent below its October 2025 peak.
Bollinger bands are volatility bands that sit two standard deviations above and below the 20-day moving average of a token’s price. A wider gap between the two bands indicates volatile conditions, while a tighter band indicates calm.
A break above the upper band traditionally signals strong upward momentum, especially after a period of compression.
Bitcoin closed above its upper Bollinger Band on the daily chart on Wednesday, the second such close since mid-January, with the price sitting at $80,484 against an upper band reading of $81,549, per TradingView data. The breakout followed the asset’s tightest-ever band reading. These so-called squeezes often set the stage for big moves in either direction.
The chart shows bitcoin’s daily price swings in candlestick format with Bollinger bands.
