Bitcoin (BTC) bulls attempted to retake $17,000 at the weekly close on Dec. 4while volatility seemed to return to the market.
Bollinger Bands call for BTC price volatility
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair crossing the $17,000 mark, a focal point all weekend.
With macro keys yet to come, bitcoin looked for catalysts as signs of volatility slipped on low time frames.
Among those watching a possible break with the status quo was the popular trader Cheds, who he pointed that the bollinger bands volatility indicator was blinking on the 4 hour chart.
The narrowing of the Bollinger Bands indicates that volatility is yet to comeand today, the bands on the 4-hour chart were at their narrowest since Nov. 27, just before the BTC/USD pair gained $1,000.
the trader Crypto Tony, for his part, stood firm on his short-term BTC price theory..
“Simply no changes in the last days“, said to his Twitter followers.
“We’re moving more into the EQ/mid range, but I wouldn’t be surprised to see a wick up to form an SFP and back down again.”
Previously, Crypto Tony had marked $21,500 as a target to aim for if the bulls were to take control and reverse the trend.
US Dollar Index Reverses Relief Bounce
Meanwhile, the coming week looked increasingly important for the US dollar and, by extension, the performance of risk assets.
The US dollar index (DXY), which was already at its lowest levels in five monthslooked decidedly gloomy at the end of the previous week.
A bounce to 105.6 on Dec 2 was almost completely reversed throughout the day, with the DXY ending at 104.5..
For technical analyst Gert van Lagen, it was all part of the plan, as bearish DXY signals were evident even in November.
“A quick bearish continuation would be the norm here”, wrote in the November 23 analysis, to which he returned over the weekend.
“Correction in progress”, added the Stockmoney Lizards trading resource on the performance of the DXY.
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