Leading crypto Bitcoin (BTC) is trying to shed the weight of the FTX collapse. Accordingly, Bitcoin bulls are struggling to turn $17,000 for support. In this environment, price action remained calm throughout the weekend.
“Bollinger Bands herald Bitcoin volatility approaching”
Bitcoin (BTC) has finally surpassed $17,000, which was a focus over the weekend. With macro hints still to come, BTC is looking for catalysts as signs of volatility seep into lower timeframes. Among those waiting for a potential break in the status quo is popular trader and analyst Cheds. The analyst notes that the Bollinger Bands volatility indicator is flashing on the 4-hour chart.
According to the analyst, Bollinger Bands are giving signals that volatility is coming soon. Also, the 4-hour chart bands were at their narrowest since November 27 (just before BTC hit $1,000).
Bitcoin (BTC) 4-hour candlestick chart with Bollinger Bands / Source: TradingViewMeanwhile, another trader, Crypto Tony, has not given up on his short-term BTC price theory. “There has been no change in the last few days,” he told his Twitter followers. The analyst also shared the following:
We grind more in the EQ/mid range. However, it wouldn’t surprise me to see a wick go up and back to create an SFP.
Bitcoin (BTC) caption / Source: Crypto Tony / TwitterEarlier, Crypto Tony had marked $21,500 as a target to target if Bitcoin bulls would take control and change the trend.
US dollar index (DXY) reverses relief bounce
In the meantime, as we reported on Kriptokoin.com, the next week looks increasingly important for the US dollar and thus risky asset performance. Currently, the US dollar index (DXY) is at five-month lows. It also had a decidedly gloomy mood at the end of the previous week’s trading.
DXY made a jump to 105.6 on Dec. However, he almost completely reversed the day and finished in 104.5. For technical analyst Gert van Lagen, that was all part of the plan, with DXY signals showing a bearish trend even in November. “A rapid downtrend would be normal here,” he wrote in his analysis on November 23, when he returned over the weekend.
US dollar index (DXY) 1-hour candlestick chart / Source: TradingView“Correction in progress,” Trade data source Stockmoney Lizards said about DXY performance.
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