Bitcoin issues flashing signals that indicate a 26% jump next week

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Bitcoin is sending technical signals that point to a 26% jump as early as next week, according to GlobalBlock. The price of the digital asset could reach $ 42,000 if the volume of transactions continues to increase. Underlying this prediction is a technical signal known as the Bollinger Bands Indicator. Sign up for our daily newsletter, 10 things before the opening bell here.

Bitcoin is sending technical signals that point to a sharp increase in prices from current levels as early as next week if trading volume continues to grow, digital asset broker GlobalBlock said in a note on Monday.

The price of the world’s largest cryptocurrency by market cap could break out of its current sideways trading range and climb to $ 42,000 within the next two weeks, said Marcus Sotiriou, salesperson at GlobalBlock. This would be 26% higher than the bitcoin price of $ 33,171 seen around noon Monday.

At the base of this prediction is the Bollinger Bands indicator, which sets an upper and lower range that predicts volatility when constrained. The indicator is at its lowest spread since September 2020.

That month, Sotiriou said, bitcoin started climbing $ 10,000 to its all-time high of nearly $ 65,000 in April of this year.

Bitcoin has been trading between $ 29,000 and $ 42,000 since a larger cryptocurrency crash in May. Unless the price gets out of that range, it technically remains in a downtrend, Sotiriou added.

However, he noted that the price of bitcoin continues to hold the 50-week exponential moving average as support. It also appears to be emerging from a downtrend in the daily Relative Strength Index, which began in January 2021.

“Because the [Relative Strength Index] has an uptrend while the price is down, the bearish momentum is extinguished, ”he said.

Bitcoin was last trading down 2.43%, at $ 33,072 at 3:23 p.m. ET on Monday.

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