Bulls attempted to retake $17,000 at the weekly close of December 4 as volatility looks set to return to the market.
BTC/USD 1-Hour Candlestick Chart (Bitstamp). Source: TradingView
Bollinger Bands demand BTC price volatility
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD crossing the $17,000 mark – a focal point for the weekend.
With macro signals still to come, Bitcoin looks for a catalyst as signs of volatility arrive in shorter timeframes.
Among those eyeing a potential break in the position was noted trader Chades, who noted that the Bollinger Bands volatility indicator was flashing on the 4-hour chart.
Narrowing Bollinger bands signal that volatility is imminent, and on that day, the 4-hour chart bands were the lowest since November 27 — just before BTC/USD topped $1,000.
BTC/USD 4-Hour Candlestick Chart (Bitstamp) with Bollinger Bands. Source: TradingView
Fellow trader Crypto Tony meanwhile stuck to his short-term BTC price theory.
“Just nothing has changed in the last few days,” he told Twitter followers.
“We’re grinding more in the EQ/mid range, but I wouldn’t be surprised to see a light to make an SFP.”
BTC/USD Annotated Chart. Source: Crypto Tony / Twitter
Earlier, Crypto Tony flagged $21,500 as a target to see if the bulls are to take control and reverse the trend.
US dollar index reverses relief bounce
Meanwhile the coming week looks increasingly important for the US dollar and, by extension, risk asset performance.
Related: Bitcoin Miner Outflow Ratio Hits 6-Month High in New Threat to BTC Price
Already at its lowest level in five months, the US Dollar Index (DXY) looked decidedly bleak at the end of last week’s trade.
A bounce to 105.6 on December 2 was almost completely reversed throughout the day, with the DXY ending at 104.5.
For technical analyst Gert van Lagen, it was all part of the plan, with bearish DXY signals also in November.
“Swift bearish continuation will remain the norm here,” he wrote in a Nov. 23 analysis he returned over the weekend.
US Dollar Index (DXY) 1-hour candlestick chart. Source: TradingView
“The correction continues,” trade source Stockmoney Lizards added of the DXY performance.