Bitcoin (BTC), the top cryptocurrency by market capitalization, is currently approaching the midline of the Bollinger band in its daily time frame, testing key technical levels that can determine short-term orientations. It is a zone that is often considered a pivot between bullish and bearish stages.
The important level to see is $83,368, which is the central band of the Bollinger Band indicator. After a while, Bitcoin is about to rise and trades just below this threshold. If you can pass the middle band, it could be a sign that bull mode may be on.
This recent bounce from the lower bollinger band, centered around the $77,500 mark, shows interest on temporary purchases, but the resistance in the middle band is not broken like the latest Daily Close.
This band is a kind of dynamic resistance during recent downtrends, with current tests that can either check on continuous pressure or open the door to stronger upward movement.
Bollinger bands have also become narrower lately. This is a sign that things are less volatile. Current setup is important as this often occurs before a stronger trend. If Bitcoin can continue to break past $83,368, it could hit an upper band of nearly $89,200, with an optimistic triple potentially hitting.
But if it can’t go back to the middle band, it may make the overall sentiment more negative and boost the possibility of recent tests.
The test results have led to the possibility of shaping the price of Bitcoin in the next few sessions, making it one of the most important technological developments of the week.
