We continue to see evidence that BTCUSD is coiling for a significant move. We believe a big rally is coming, but we have to wait and see.

Between now and October 6, we believe that the range in BTCUSD may continue to compress. The October 6 date matches up with the apex of the triangular formation Bitcoin has traveled in since July. In theory, the closer an instrument gets to the apex of a large triangle, the bigger the move will be once a breakout unfolds.

The magnitude of the range compression is seen in the Bollinger Band picture. Bollinger Bands are a measure of volatility . The width of the Bollinger Bands has crashed to a level seen right before new big take-off points throughout 2019. Those points are marked with green arrows.

Bottom Line: in roughly 10-days, things may come to a head in Bitcoin . In our view, Bitcoin is going to explode as traditional portfolio managers will be forced to add Bitcoin to their portfolios for a "kicker" to enhance Q4 returns.

We also think Bitcoin can benefit from future Fed liquidity injections. The Fed may have to continue to pump money into the financial system to correct the imbalances seemingly created by the incident in Saudi Arabia.

Finally, we think Bitcoin may benefit from, or add to, potential flight to quality. Small alts may be in trouble here.

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/.