When Will Bitcoin's Ranging End?

When Will Bitcoin's Ranging End?

Bitcoin and the crypto market have been caught in a range ever since BTC reached $10,000 on May 7, 2020. Today we sit at 64 days of market ranging. The Bollinger Bands (a volatility indicator) have squeezed to the narrowest margins since November 2018, predicting that a significant market move may be imminent.  

Historic BTC Ranges

It is impossible to predict precisely when the big move will occur. However, as is the case with technical analysis, we can look at the past to try and predict the future. Let's look at the last five BTC ranges:

1. April 2nd, 2020 - April 22nd, 2020 (20 days)

2. November 25th, 2019 - January 5th, 2020 (41 days)

3. September 26th, 2019 - October 22nd, 2019 (26 days)

4. December 7th, 2018 - April 1st, 2019 (115 days)

5. September 9th, 2018 - November 13th, 2018 (65 days)

The average duration of the last five ranges is 53.4 days. If we were to look at the average only, the market conditions should have already changed. Patterns in technical analysis tend to repeat themselves, but they don't have to. Therefore, this ranging market may be as long (or longer) than the December 7th, 2018 - April 1st, 2019 range, which lasted 115 days. 

Bottom line: The ranging period is likely to end in the coming days. However, there is a possibility that it will continue for even longer than 50 days from today. 

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