Technical Technical Bollingerbands 20 Technical Bollingerbands 20

Bitcoin

Bollinger Bands frame price with a moving average and volatility-based upper and lower bands.

Why it matters

They flag when price is statistically overextended relative to its recent range.

A moving average is bracketed by bands set a number of standard deviations above and below.

Price tagging the upper band signals overbought risk; the lower band signals oversold conditions.