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- Bitcoin is flashing technical signals that point to a 26% increase as early as next week, says GlobalBlock.
- The price of the digital asset could rise as high as $ 42,000 if trading volume continues to pick up.
- In support of this prediction is a technical signal known as the Bollinger Bands indicator.
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Bitcoin is flashing technical signals that indicate a sharp jump in prices from current levels as early as next week if trading volumes continue to pick up, the digital asset broker GlobalBlock said in a statement on Monday.
The price of the world’s largest cryptocurrency by market capitalization could break out of its current sideways trading range and climb to $ 42,000 in the next few weeks, said Marcus Sotiriou, sales dealer at GlobalBlock. That would be 26% higher than the $ 33,171 Bitcoin price seen around noon on Monday.
This forecast is underpinned by the Bollinger Bands indicator, which defines an upper and a lower area that predicts the volatility in the event of a narrowing. The indicator has its narrowest spread since September 2020.
That month, Sotiriou said, Bitcoin began its surge from $ 10,000 to its all-time high of nearly $ 65,000 in April this year.
Bitcoin has been trading at $ 29,000 to $ 42,000 since a broader cryptocurrency crash in May. Unless the price breaks out of this range, it will technically remain in a downtrend, Sotiriou added.
However, he noted that Bitcoin price continues to hold the 50-week exponential moving average as support. It also appears to be breaking out of a downtrend in the daily Relative Strength Index that began in January 2021.
“Because the [Relative Strength Index] is trending up, while price is trending down, the bearish momentum is dying, “he said.
Bitcoin was last traded 2.43% lower on Monday at 3:23 p.m. ET, at $ 33,072.