Bitcoin’s price has maintained a steady range between $85,000 and $90,000 for the past two weeks, resulting in a Bollinger Bands squeeze. The Bollinger Bands squeeze indicates that a notable price movement could be on the horizon. Historical patterns indicate that these squeezes frequently foreshadow significant price movements. Bitcoin’s BTC $88,935.95 price chart appears remarkably stable according to a tool for measuring volatility, suggesting a significant movement is on the horizon.
BTC has been hovering in a narrow band between $85,000 and $90,000 over the last fortnight. The gap between its Bollinger Bands, which are volatility bands positioned two standard deviations above and below the 20-day simple moving average of the asset’s price, has contracted to under $3,500, marking the lowest level since July, according to data. The Bollinger Bands squeeze suggests a low-volatility phase where the market is gathering momentum for its next significant movement. Historical data shows that significant price fluctuations frequently occur after these squeezes.
For instance, the most recent Bollinger Band squeeze in late July marked a two-week period of sideways movement between $115,000 and $120,000. The squeeze set the stage for a three-month surge, with prices fluctuating dramatically between $100,000 and $126,000. A comparable scenario emerged in late February: a fluctuation between $94,000 and $98,000 contracted into Bollinger Band squeezes, subsequently leading to a drop to $80,000 by the end of the month. Bollinger Bands have consistently indicated volatility surges since at least 2018.
The recent squeeze necessitates heightened awareness among traders, as prices are poised to shift swiftly in either direction. The recent squeeze necessitates heightened awareness among traders, as prices may soon shift swiftly in either direction. At the time of this report, bitcoin is trading at approximately $88,600, reflecting a gain of just over 1% in the last 24 hours.