Buying Bitcoin Before $54,420 May Be Premature, Bollinger Bands Warn
Analysis
Price Impact
MedThe article suggests that buying bitcoin before it reaches $54,420 might be premature, as indicated by the bollinger bands on a monthly chart. this level is identified as a potential market bottom based on historical data. the price is currently trading at $66,000, indicating a potential downside of about 17% to reach the lower band.
Trustworthiness
MedThe analysis relies on the bollinger bands indicator, which is a common technical analysis tool. however, technical indicators are not always perfectly predictive, and other market factors could influence price movements. the disclaimer also advises users to conduct their own research.
Price Direction
BearishThe bollinger bands suggest that the price may decline to the lower band around $54,420, which is considered a potential cycle bottom. while a bounce to the middle band ($89,600) is also a possibility, the immediate indication from the indicator is towards further downside towards the lower band.
Time Effect
LongThe analysis is based on a monthly chart and discusses historical patterns and potential cycle bottoms, suggesting a longer-term perspective for potential investment decisions rather than short-term trading.
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Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Buying Bitcoin before it reaches $54,320 may be too early. At least, that is the picture painted by the monthly BTC/USD chart with Bollinger Bands applied, as per TradingView. Advertisement According to this indicator, which measures not only the asset’s volatility but also which bias currently prevails on the market, after Bitcoin’s price in December 2025 fell below the middle band represented by the 20-month moving average, its main magnet became the lower band at $54,420. While in December this level seemed out of reach, two months later and after a nearly 30% decline in the leading cryptocurrency, such marks no longer look surreal. In net terms, Bitcoin has about 17% left to fall in order to reach the lower band on the monthly time frame. HOT Stories Crypto Market Review: Bitcoin's $70,000 Guarded Like Treasure, Will Shiba Inu Have Bullish March? Ethereum Breaks Above 100-Day Threshold XRP Volume Rises 212%, Bitcoin ETFs Back in Demand With $506 Million, Dogecoin Price Reclaims $0.10 — U.Today Crypto Digest Why $54,420 level is magnet to watch for BTC Looking at the historical perspective, it was the lower band on the monthly time frame that marked the market bottom in 2022, when Bitcoin hit $18,622, touching that band. Although in the following months up to January 2023, the price continued moving sideways and even refreshed that low, it did not touch the lower band again. Advertisement BTC/USD chart with Bollinger Bands applied, Source: TradingView On one hand, a move into the $54,000 zone with a touch of the lower Bollinger Band would likely place the cryptocurrency very close to a cycle bottom. On the other hand, this does not rule out the possibility that Bitcoin could set a further lower low during a subsequent sideways recovery phase. You Might Also Like Fri, 02/27/2026 - 14:57 Wikipedia Co-Founder: No One Is Using Bitcoin as Money By Alex Dovbnya Currently trading at $66,000, BTC sits right in the middle of the lower Bollinger channel, representing a relatively dangerous area for making investment decisions, as it has equal probability of retesting the middle band at $89,600, which would mean a 36.5% move, or continuing the decline that has been underway for five months since October 2025 and hitting the lower Bollinger Band. Advertisement Either way, a move toward either the middle band or the lower band would offer a more optimal setup for investment decisions, as it would provide greater clarity and a more defined risk-reward profile. #Bitcoin #Bitcoin Price #Bollinger Bands