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登録日: 2022年10月27日

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Analyst predicted bitcoin to rise to $30,000 in November


Trader and analyst Michael van de Poppe predicted that the price of the first cryptocurrency will rise to the $30,000 level within the next two to three weeks.

"Within two to three weeks bitcoin will make a significant breakout. My bet is up. Probably $30,000," Michael van de Poppe wrote.

The bullish forecasts were supported by an analyst under the nickname TechDev, referring to the Bollinger Band volatility indicator.

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He noted that the price of bitcoin relative to the Nasdaq index peaked in April 2021. The indicator has been consolidating since then, so TechDev expects digital gold to rise.




Bollinger Bands: how to use this indicator in cryptocurrency trading

BB is used to determine the relative lows and highs on stock and cryptocurrency price charts, indices, commodities, options, and futures. The tool is also used in relation to trading volumes, market momentum and statistical data.

The indicator assumes that a price near the upper line indicates overbought, a price near the lower line indicates oversold. The Bollinger Bands do not give signals to buy or sell but give hints and help us determine the direction and possible momentum of the future movement.

How Bollinger Bands work

Bollinger bands create a "channel" on a chart accompanying the price curve of an asset and consist of three lines: middle, upper and lower. The basis for the construction of the BB is the middle line, which is a simple moving average (SMA). The other two lines are designated as positive and negative standard deviations.

As the standard settings for the BB indicator, which are recommended by its author, take a period of 20 and the deviation with the value of 2. For example, when looking at a daily chart of bitcoin, the settings will look like 20-SMA with a deviation of 2.

Note that the higher the period, the lower the sensitivity of the indicator. In practice, at accurate setting of BB, as noted by Bollinger himself, 90% of the time the curve of asset price should be between the lower and upper lines of the indicator.

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