Trade Bitcoin Trading

Bollinger Band Price Action in Ranging Bitcoin Trading Markets

Bollinger Bands spot when trends stretch too far. Use these steps for flat markets with this tool.

The Bollinger Band indicator for BTC/USD is crucial because it provides actionable bitcoin trading signals suggesting an imminent bitcoin price breakout may occur.

During a bitcoin trending market these techniques don't hold, this only holds as long as Bollinger Bands are pointing sideways.

  • If the btcusd trading market bitcoin price touches/tests the upper band it can be considered overextended on the upside - over-bought.
  • If the btcusd trading market bitcoin price touches the lower band the bitcoin price can be considered overextended on the bottom side - over-sold.

One application of the Bitcoin Bollinger Band indicator involves utilizing the aforementioned overbought and oversold trading guidelines to set buy and sell targets in a sideways-moving bitcoin market.

  • If bitcoin price has bounced off the lower band crossed the centerline moving average then the upper band can be used a sell level.
  • If bitcoin price bounces downwards off the upper band crosses below center MA the lower band can be used as a buy level.

Trading Bollinger Band in Range Bound Bitcoin Trading Markets

Bollinger Band in Range Bound Bitcoin Trading Markets - Bollinger Band Method

In the cryptocurrency market mentioned above, when the bitcoin price touches the upper or lower bands, it can be used as a goal for making money on bitcoin trades.

Positions may be initiated once the price action in the Bitcoin market reaches the ceiling of the resistance zone or the floor of the support level. It is prudent to establish a stop-loss order for Bitcoin a short distance above or below the entry, contingent upon the direction of the trade, anticipating a potential breakout beyond the prevailing range defined by the Bollinger Bands.

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