Jun 16, 2025
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Bitcoin Price Volatility Indicator Suggests Potential Price Surge
Technical Analysis Overview
A key indicator suggests that Bitcoin's BTC price may soon experience increased volatility, potentially leading to a significant upward movement.
Key points include:
- The analysis focuses on the gap between Bollinger Bands, which are two standard deviations above and below the 20-week simple moving average.
- A widening gap indicates heightened market activity and volatility, historically linked to upward price movements in BTC.
- The MACD histogram associated with this gap has turned positive, signaling potential bullish momentum.
- Traders use the Bollinger Band spread and MACD for detecting trend reversals.
The current MACD flip to positive indicates a possible volatility increase ahead. Historical data shows that previous positive MACD crossovers have preceded significant bull runs.
