Tight Bollinger bands foreshadow major Bitcoin price swing

Bitcoin's price action has entered a low-volatility phase as its Bollinger Bands have compressed to levels that historically precede large moves.

Over the past two weeks BTC has traded in a narrow range between $85,000 and $90,000. The gap between the bands — set two standard deviations above and below the 20-day simple moving average — has narrowed to under $3,500, the tightest since July, according to TradingView.

Past squeezes have often led to big swings. A late‑July squeeze followed a two‑week sideways period around $115,000–$120,000 and preceded a three‑month expansion that saw prices swing from roughly $100,000 to $126,000. A similar late‑February squeeze preceded a drop from the mid‑$90,000s to about $80,000 by month‑end. Bollinger Band squeezes have signalled volatility explosions since at least 2018.

As of writing, bitcoin traded near $88,600, up just over 1% on the day. The latest compression suggests traders should be prepared for a rapid move in either direction.

Key Topics

Crypto, United States, Bitcoin, Volatility, Bollinger Bands, Trading, Price