With the disappointing drop below 10k, it is tempting to feel like Bitcoin is in an endless range. While we agree that this range has officially become annoying, we also continue to believe consolidation will end soon.

Last night's drop to 9700 brought BTCUSD to the bottom of a triangle and the bottom Bollinger Band. A Bollinger Band is a measure of volatility. It draws line two standard deviations above and below the current price. Said plainly, when a market is volatile or making a sharp move in either direction, the width Bollinger Bands widen out. If a coin sits in a range for a long time, the width of the Bollinger Bands contracts.

Trading View has an indicator that measures the width of the Bollinger Bands . At present, the width of the Bollinger Bands has dropped to points seen near prior big bottoms in Bitcoin . In February, March, and April, it paid to buy long Bitcoin when it dropped to its bottom Bollinger Band . During those times, Bitcoin has been in a tight range.

Bottom Line: Sometimes in crypto, you have to buy when it looks terrible. While that drop was unfortunate for the day traders, the decline might be a golden opportunity for buy and hold investors to get involved. If we are wrong, then the downside is BTCUSD to 7500.

DISCLOSURE: Token Metrics is a regular publication of information, analysis and commentary and does not provide individually tailored investment advice.  The Token Metrics team has invested and advised in many blockchain companies. A complete list of the team disclosures, advisory roles and current holdings can be viewed here: https://blog.tokenmetrics.com/disclosures/.