Bollinger Bands are a technical indicator composed of three lines: a simple moving average at the center and two bands plotted at a certain number of standard deviations above and below. When the bands tighten (squeeze), it signals a compression phase that generally precedes a sharp market move, but without indicating its direction. Bitcoin closed above its upper band at $80,484 on May 7, 2026, marking the second such close since mid-January. John Bollinger, the indicator’s creator, himself took a long position on bitcoin following this bullish signal. Experienced traders wait for a clean close beyond a band, confirmed by volume, and recommend crossing this indicator with a second tool such as the RSI.
Source: Read the original article
