Bitcoin’s Bollinger Bands compressed to record-tight weekly levels, with analysts predicting inevitable volatility expansion and major price movement.
A key technical indicator for Bitcoin has squeezed to its tightest ever level amid low volatility, which analysts say usually precedes a large breakout and volatility spike.
“Bitcoin’s weekly Bollinger Bands are now the tightest in history,” the popular crypto analyst “Mr. Anderson” wrote to X on Tuesday, noting the technical indicator, which shows volatility and possible overbought or oversold positions.
“When volatility compresses this tightly, expansion always follows,” they said. “Once expansion starts, price almost always tests the outer bands rather quickly.”
