Bitcoin (BTC) is set to rally “significantly” as intense volatility approaches, according to new analysis.
Julien Vittel, head of macroeconomic research at financial advisory publisher Global Macro Investor, predicted in a post on X on July 19 that the BTC price could rise to as high as $190,000.
“Compressed” Bollinger Bands Spark Talk of 6-Digit BTC Price
Bitcoin has the potential to soar to six-figure all-time highs if it shows signs of volatility like it has in the past.
According to Bittel, the current “crazy” state of the Bollinger Bands volatility indicator is expected to lead to a surge in BTC/USD.
“Bollinger Bands are incredibly narrow by historical standards,” he summarized.
“There have only been two months in history when the weekly Bollinger Bands have been this compressed: April 2016 and July 2023.”
Bollinger Bands are one of the most essential cryptocurrency volatility indicators, and also provide insight into the strength of price trends.
The gap between the upper and lower bands on the weekly timeframe has rarely been tighter. Traditionally, what comes next is always good news for bulls.
“In both previous events, the Bitcoin price rose significantly over the subsequent 12 months,” Bittel added.
“A similar move this time will target Bitcoin in the $140,000 to $190,000 range.”
This isn’t the first time the band has pointed to a major rally in the BTC price during this bull market. As Cointelegraph reported, regulatory concerns have prevented the cryptocurrency from reaching its local highs ahead of the launch of a U.S. spot Bitcoin exchange-traded fund (ETF) in late 2023.
Last month, Bittel made a similar prediction about what the future holds for Bitcoin, calling for “patience” amid the bull market’s biggest price drop.
History Suggests Bitcoin Breakout in September
According to data from Cointelegraph Markets Pro and TradingView, as of July 19, BTC/USD was around $64,000, up 11% from the previous week.
Related: Bitcoin ETFs Have 4-8x More BTC Price Influence Than Miners – Study
Although trader confidence is returning and price indicators are calling for a sustained bull market, few are convinced that now is the right time.
In a typical bull market environment, there is a noticeable lack of interest from major retail investors, contrasting with the accumulation behavior of institutions and whales.
Popular trader Rekt Capital predicted that September will be a make-or-break month for Bitcoin’s rally, comparing past and current bullish price cycles.
“If history repeats itself, Bitcoin will exit the reaccumulation range in September 2024,” he told X followers this week.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.