Crypto Markets Erase Gains as Binance Trial Begins – Altcoin Takes a Dive

Crypto markets erased most of their gains yesterday as the Binance trial approached, and things are turning around today. The price continues to chase liquidation in a shallow range driven by accumulated liquidity in futures. BTC has once again surpassed $27,100 at the time of writing.

John Bollinger’s Bitcoin Commentary

John Bollinger, the creator of the Bollinger Bands volatility indicator, shared a comment on the current state of the king crypto from his X account yesterday. According to Bollinger, Bitcoin is on the verge of a significant breakout, and volatility may increase further in the near future. The price of Bitcoin, which reached September highs yesterday, is challenging resistance levels that have not been reached since mid-August.

The recent signals are encouraging. Bollinger Bands use a simple moving average around which standard deviation is used to determine potential price ranges and volatility. At the time of writing, BTC/USD is putting daily candles touching the upper band. When this happens, we can see a return to the center band or an upward breakout in the opposite direction.

Bitcoin (BTC) Predictions

It is still too early to say that an upward breakout will occur. The band has been contracting in an unprecedented manner in history, and BTC volatility continues to remain at record lows. Meanwhile, there is a growing consensus that we are approaching a turning point on the macro front. With the announcement of the Fed’s interest rate decision tomorrow, it is expected that the interest rate ceiling will be declared and the policy will maintain its tight position for 6-9 months. While the Fed will continue to reduce its balance sheet, it will also continue to tighten. In this case, it may be reasonable not to increase interest rates further.

Material Indicators referred to the upcoming decision of the US Federal Reserve on interest rates, stating that it could lead to sudden fluctuations and unreliable short-term trading signals. It may be beneficial for investors to be cautious in both directions against the likely fluctuations in the coming days.

Closures above $27,400 for Bitcoin will be promising in the bullish scenario. However, FTX sales and the imminent liquidation of SilkRoad and MtGox BTC are causing doubts to persist.