Bitcoin Tests Monthly High Bollinger Band: A Possible Signal for a Rally
Crypto expert Tony Severino has pointed out a key retest of Bitcoin’s monthly upper Bollinger Band during its recent market dip. He highlighted this technical signal, which tracks market volatility and potential reversa on X (formerly Twitter). Severino noted that this pattern resembles Bitcoin’s behaviour in January 2024, which preceded a major rally.
According to Severino’s daily candlestick chart, the upper Bollinger Band is slightly above $96,000, close to Bitcoin’s current price. This retest suggests Bitcoin might be regaining strength after recent losses. Severino compared Bitcoin’s current price trend to January 2024 when the cryptocurrency rose 86% after a similar retest.
In January 2024, after Bitcoin had surged in late 2023, it briefly dipped below $40,000 to test the upper Bollinger Band. This test led to a rally, helping Bitcoin break its all-time high and surpass $70,000 in March. Severino believes Bitcoin could reach $178,000, the upper end of his target range, if it replicates the 86% rise from that period.
Currently, Bitcoin is priced at $96,402, near the upper Bollinger Band. In the past 24 hours and 7 days, Bitcoin has fallen by 2.11% and 5.4%, respectively. Over $5.72 billion in Bitcoin profits from this retreat has increased short-term selling pressure. The Relative Strength Index (RSI) has dropped significantly from 69 on December 17 to 45 today, reflecting the ongoing correction.
However, there are signs that selling pressure may be easing. Bitcoin’s RSI has found support at 43 since September, which could provide the foundation for a rise toward $178,000.