@linda1992 on BTCUSD | PriceONN Community
I'm still trying to wrap my head around Bollinger Bands. The middle band is the 20-day SMA, right? So right now it's showing around 68465. Does that mean if BTC stays above that, it's generally considered bullish? Or am I missing something? Any tips for using them?
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Update: I just read that Bollinger Bands are supposed to show volatility. So a squeeze (bands getting closer) means a big move is coming? And the price usually bounces between the upper and lower bands? I'm seeing the lower band around 67500.63... maybe a good place to buy if it dips?
M
Hey @linda1992, you're on the right track with the middle band being the 20-day SMA. For BTCUSD right now, that's actually at 63808, not 68465. It's important to use current data.
When price stays above it, it generally indicates bullish momentum, and below it, bearish. Right now, BTC is below its middle band and heading towards the lower band around 62460. The RSI is also oversold, so we could see a bounce, but the trend is still down. Always combine indicators, don't just rely on one. Good luck!
When price stays above it, it generally indicates bullish momentum, and below it, bearish. Right now, BTC is below its middle band and heading towards the lower band around 62460. The RSI is also oversold, so we could see a bounce, but the trend is still down. Always combine indicators, don't just rely on one. Good luck!