Bollinger Bands Bitcoin Price Action in Ranging Bitcoin Trading Markets

Bollinger Bands Bitcoin Indicator is also used to identify periods when a cryptocurrency trading market trend is overextended. The guidelines below are considered when applying this cryptocurrency indicator to a sideways cryptocurrency trend.

Bollinger Bands Bitcoin Indicator is very important because it is used to give bitcoin trading signals that a bitcoin price break out may be upcoming.

During a bitcoin trending market these techniques don't hold, this only holds as long as Bollinger Bands are pointing sideways.

• If the btcusd trading market bitcoin trading price touches the upper band it can be considered overextended on the upside - overbought.
• If the btcusd trading market bitcoin trading price touches the lower band the bitcoin price can be considered overextended on the bottom side - oversold.

One of the uses of Bitcoin Bollinger Bands indicator is to use the above overbought and oversold bitcoin trading guidelines to establish buy & sell targets during a ranging bitcoin market.

• If bitcoin price has bounced off the lower band crossed the center-line moving average then the upper band can be used a sell level.
• If bitcoin price bounces down off the upper band crosses below center moving average the lower band can be used as a buy level.

Bollinger Bands in Ranging Bitcoin Trading Markets - Bollinger Bands Strategy

In the above ranging cryptocurrency market the instances when the bitcoin trading price hits the upper or lower bands can be used as profit targets for long/short bitcoin trade positions.

Bitcoin trades can be opened when the btcusd trading market hits the upper resistance level or lower support level. A stop loss bitcoin order should be placed a few pips above or below depending on the bitcoin trade opened, just in case the bitcoin price action breaks-out of the range within these Bollinger bands.