Bollinger Band Indicator & Bitcoin Price Volatility

When bitcoin price volatility is high; bitcoin prices close far away from the moving average, the bitcoin Bollinger Bands width increases to accommodate more possible bitcoin price action movement which can fall within 95 % of the mean.

Bollinger Band indicator will widen as bitcoin price volatility widens. This will show as bollinger band bulges around the bitcoin price. When the bitcoin trading bollinger bands widen like this it is a continuation bitcoin pattern and bitcoin price will continue moving in this direction. This is normally a continuation bitcoin signal.

The Bollinger bands indicator example illustrated below illustrates the Bollinger bulge.

High Bitcoin Price Volatility - Bitcoin Bollinger Bands Indicator - Bollinger Band Bulge

When bitcoin price volatility is low: bitcoin prices close closer towards the moving average, the width decreases to reduce the possible bitcoin price action movement which can fall within 95 % of the mean.

When bitcoin price volatility is low bitcoin price will start to consolidate waiting for bitcoin price to breakout. When the bitcoin trading bollinger bands indicator is moving sideways it is best to stay on the sidelines and not to place any cryptocurrency trades.

The Bollinger bands indicator example is shown below when the bitcoin bollinger bands narrowed.

Low Bitcoin Price Volatility - Bitcoin Bollinger Bands Indicator - Bollinger Bands Squeeze