Bitcoin: One Indicator Signals Rocky Start To 2025

I've found one indicator that has historically shed some light into Bitcoin's future performance. In this article, I will explain how it has worked in the past (and cases where it has not worked so well) and why it may indicate a rocky

This article discusses a technical indicator that may hint at a rocky start to 2025 for Bitcoin (CRYPTO: BTC-USD). The indicator in question is the Bollinger Bands Percentage, which measures the distance between an asset's price and the upper or lower Bollinger Band, expressed as a percentage.

According to the author, when this indicator spikes to extremely high levels, it can often indicate a potential reversal in the asset's price trend. For instance, if the indicator surges to 95% or higher, it might suggest that an asset is nearing a top and could be poised for a downturn.

The author points out that this indicator has played out in Bitcoin's past price movements. In 2017, as BTC soared to all-time highs, the Bollinger Bands Percentage indicator reached 98% in December of that year, just before Bitcoin's price began to plummet.

Similarly, in 2021, the indicator again hit 98% in March, coinciding with another peak in Bitcoin's price trend before a subsequent downturn.

However, the author also notes that this indicator isn't foolproof and there have been instances where it didn't accurately predict a price reversal.

For example, in 2019, the indicator reached 97% in June, but Bitcoin's price continued rising for several more months.

Ultimately, the author suggests that this indicator might be hinting at a rocky start to 2025 for Bitcoin, considering that the indicator is currently sitting at 94%. This could potentially indicate that BTC is nearing a top and might be setting up for a downturn early next year.