BitcoinThe extraordinary calmness observed in the price chart of ‘s price chart in recent weeks indicates that a strong price movement is approaching in terms of technical indicators. The significant narrowing of the Bollinger Bands reveals that volatility has fallen to its lowest levels in a long time. According to market data, the largest cryptocurrency has been moving sideways in a narrow band for more than two weeks. Past cycles show that similar squeezes are followed by harsh and directional movements.
What Does Bollinger Bands Squeeze Mean?
Bitcoin has been making limited price movement between $85,000 and $90,000 for the last two weeks. Based on two standard deviations above and below the 20-day simple moving average, according to TradingView data. Bollinger Bands The gap between them fell below $3,500, falling to the narrowest level since July. This table reveals that volatility in the market has been seriously suppressed.
Bollinger Bands squeezes usually occur during periods when the market is looking for a new direction. The fact that buyers and sellers remain in balance in the short term causes the price to move in a narrow band. In the technical analysis literature, this structure is accepted as a harbinger of a harsh price wave in which the accumulated energy will be released.
The indicator’s past performance supports these comments. Since at least 2018, Bollinger Bands have accurately signaled strong price expansions following periods of low volatility. The current outlook suggests that a similar scenario may come to the fore again.
Past Examples and Possible Scenarios
The last squeeze at the end of July resulted in Bitcoin stalling in the $115,000–120,000 band for two weeks. In the following three months, price movement accelerated significantly, with sharp fluctuations between $100,000 and $126,000. The squeeze became the starting point of a long-term volatility expansion.
A similar picture was seen at the end of February. The price, which narrowed in the range of 94,000–98,000 dollars, fell to 80,000 dollars before the end of the month after the Bollinger Bands tightened. Both examples reveal that the indicator gives strong signals about speed, not direction.
Currently, Bitcoin is trading around $89,000 and has gained just over 1 percent in the last 24 hours. The technical structure keeps the possibility of a sharp upward or downward movement on the table. Therefore, professional investors and traders are focused on the moment when the price will break out of the narrow band.
