Bitcoin (BTC) Price Target Hints at a Potential Surge to $190,000 as Bollinger Bands Hint at Major Upside

If historical trends hold, Bitcoin might be set to achieve six-figure valuations. BTC price could reach up to the $190,000 target.

The price of Bitcoin ( BTC ) could be on the cusp of a substantial surge, with some analysts suggesting a potential target of up to $190,000. This anticipation stems from an analysis of the Bollinger Bands, a key indicator of market volatility.

According to Julien Bittel, head of macro research at Global Macro Investor, the current state of the Bollinger Bands is particularly noteworthy. Bollinger Bands gauge the volatility of a market and the strength of price trends. Usually, the upper and lower bands narrow before a breakout occurs, indicating a period of low volatility that precedes a significant price movement.

In this case, the weekly Bollinger Bands have compressed to an unusually tight range, indicating the potential for a breakout. Only twice before — in April 2016 and July 2023 — have the Bollinger Bands been so compressed on a weekly timeframe.

“Bollinger Bands are unusually tight. Only twice before (Apr 2016, Jul 2023) have the weekly Bollinger Bands been this compressed on a log chart,” Bittel observes.

These instances of Bollinger Band compression in the past have been followed by substantial price increases over the following year. For example, after April 2016, the price of BTC increased by more than 300%.

Following this pattern, Bittel suggests that the next target for Bitcoin could be in the range of $140,000 to $190,000. However, he notes that this analysis is based on technical indicators and does not account for other factors that could influence Bitcoin's price.

This analysis aligns with other observations by traders, such as Rekt Capital, who believe that September could be a critical month for a potential breakout in Bitcoin's price. Based on historical cycles, a significant price movement might occur in September 2024.

Meanwhile, other analysts have noted bullish signals on shorter timeframes, such as Scott Melker, and bullish crosses on longer timeframes, like analyst Moustache. Additionally, market technician Aksel Kibar points out that Bitcoin's ability to stay close to resistance without dropping significantly is a positive long-term sign.

According to IntoTheBlock, there is strong support around the $62,700 level, where significant buying activity has taken place. In the short term, Bitcoin's price appears to be consolidating within a narrow range, with bulls defending key support levels and bears remaining cautious.

The upcoming weekend could bring increased volatility, potentially setting the stage for a notable price movement.

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