Band/Tether Market Overview

• BANDUSDT opened at $0.675 and traded between $0.66 and $0.697, closing near $0.673 with high volatility.
• Price formed bullish and bearish engulfing patterns during the 12-hour session, with key resistance at $0.685–$0.69.
• RSI hit overbought and oversold zones, signaling potential reversals; volume surged in late trading.
• Bollinger Bands expanded mid-session, reflecting increased volatility, with price settling below the lower band in the final hours.
• Notional turnover reached $44.1M, with the highest volume concentrated in the 6–8 AM ET window.

Band/Tether (BANDUSDT) opened at $0.675 on October 8 at 12:00 ET and closed at $0.673 on October 9 at 12:00 ET, after a volatile 24-hour session that saw a high of $0.697 and a low of $0.66. Total trading volume was 611,391 BAND, with a notional turnover of approximately $44.1M. The pair exhibited sharp intraday swings and key reversal signals, especially as price approached key levels.

Structure & Formations

Price broke out of a short-term consolidation phase in the early morning hours before forming a bearish engulfing pattern near $0.697. Later in the session, a bullish engulfing pattern emerged as price found support at $0.671–$0.673. A long lower shadow at the 7:45 AM ET candle indicated buyers stepping in after a sharp drop. Key support levels formed at $0.671–$0.673, while resistance remained contested at $0.685–$0.689. A doji at $0.681 and $0.694 signaled indecision among traders during critical pivot points.

Moving Averages and Momentum

On the 15-minute chart, the 20-period and 50-period moving averages were in close proximity, with the 20 MA briefly crossing above the 50 MA in the late morning session before diverging. The daily chart showed the 50 MA at $0.682, above the 200 MA at $0.676, indicating a potential bearish divergence in the longer term. Momentum, as measured by MACD, showed a bearish crossover after 3:00 AM ET, followed by a brief bullish twist in the late session. RSI oscillated between overbought (>70) and oversold (<30) zones, reinforcing the notion of strong volatility and price swings.

Bollinger Bands and Volatility

Bollinger Bands expanded significantly after 7:00 AM ET as price surged to $0.697, reflecting heightened volatility. Price spent much of the session near the upper band before retreating sharply. A midday contraction in the bands suggested a potential consolidation phase, but it was short-lived. By the close, price settled just below the lower band, indicating a bearish bias and possible continuation of downward pressure.

Volume and Turnover

Trading volume peaked at 75,601 BAND during the 7:00 AM ET candle, coinciding with a sharp price drop from $0.697 to $0.68. In the final hours, volume surged again in the 11:45 AM to 2:00 PM ET window, coinciding with a test of support at $0.671–$0.673. Notional turnover reached a 24-hour peak of $3.7M at 7:00 AM ET. The divergence between volume and price during the afternoon suggested a lack of conviction in the bearish move, with buyers emerging at key support levels.

Fibonacci Retracements

Applying Fibonacci retracements to the key swing from $0.66 to $0.697, the 61.8% level at $0.684 became a focal point for multiple price tests. A 38.2% retracement at $0.679 also showed resistance during the morning hours. On the 15-minute chart, price tested the 50% and 61.8% levels multiple times, suggesting a potential continuation of the range-bound behavior unless a breakout above $0.685 occurs.

Backtest Hypothesis

Given the formation of key engulfing patterns and the RSI's movement into overbought and oversold zones, a backtesting strategy could focus on short-term trend-following entries around the 20/50 MA crossovers on the 15-minute chart. A long entry could be triggered when price closes above the 20 MA with volume above the 20-period average, while a short entry would be initiated when price closes below the 50 MA with bearish momentum. Stop-loss levels can be placed at key Fibonacci retracement levels, while take-profit targets could align with previous swing highs or Bollinger Band breakouts.