Bitcoin’s weekly Bollinger Bands hit a new all-time high, where will Bitcoin go next?

Bitcoin technical indicators have approached their tightest levels on record as volatility subsides, with the asset remaining range-bound despite its recent peak.

“Bitcoin’s weekly Bollinger Bands have seen record levels of tightness recently,” chartered market technician Tony Severino said on Wednesday.

Currently, despite the cryptocurrency reaching an all-time high of $126,000 earlier this week, it has yet to make a strong move above the upper limit.

He said that based on past local consolidation ranges, “it could take up to a hundred days for a meaningful breakout (or collapse, if Bitcoin falls).”

Bollinger Bands are a technical analysis tool used to measure market volatility and identify potential overbought or oversold conditions in an asset.

parabolic potential

The analyst added that expansion from such a squeeze setup could lead to a “false head,” which we may have seen with the latest move.

“We may also see another head-fake start from here and then eventually fly higher,” he added:

“This has the potential to send Bitcoin parabolic, or end a mature three-year bull rally.”

Mark Moss, chief strategist at Satsuma Technology, said Bitcoin’s new peak still looks far from the peak of the cycle, “and the external fundamentals look hot.”

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“Unlike 2021, the Fed is not tightening monetary policy; instead it is easing, ETFs and BTC (financial companies) are causing the biggest demand shock, and the world has woken up from the ‘devaluation trade’.”

Uptober is still on track

Despite today’s 2.5% pullback to $121,000 levels, Bitcoin’s “uptober” remains on track, with the asset up 7% so far this month. According to data from Coinglass, BTC has gained in 10 of the past 12 October quarters and in 8 of the past 12 Q4 quarters.

Meanwhile, analyst “Sykodelic” is one of many claiming that the four-year cycle no longer exists. “The obvious fact is that Bitcoin still has considerable room to expand before the end of the price cycle,” he said on Wednesday.

Stock-to-Flow model creator “Plan B” said: “I wouldn’t be surprised if Bitcoin doesn’t fall below $100,000 again, as we saw $100,000 resistance turning into $100,000 support.”

He added that September closed in six figures for the fifth consecutive month, with the same happening at $10, $100, $1,000 and $10,000.