Compressed volatility bands suggest Bitcoin may be nearing a decisive breakout after weeks of consolidation.
Bitcoin is showing signs of an impending volatility surge as price action remains unusually calm. After trading within a narrow range for weeks, technical indicators now suggest that a significant price swing could be approaching, echoing patterns seen before past major market moves.
Over the past two weeks, Bitcoin has traded between $85,000 and $90,000, reflecting strong equilibrium between buyers and sellers. This prolonged consolidation has led to a sharp contraction in Bollinger Bands, a widely used volatility indicator.
Why the Bollinger Bands Squeeze Matters
Historically, Bitcoin squeezes have often preceded powerful price expansions. Similar low-volatility periods in recent years were followed by sharp rallies or steep corrections, as pent-up momentum was released once price broke out of its range.
Past examples show that sideways movement combined with shrinking volatility frequently sets the stage for aggressive directional moves, sometimes lasting weeks or months.
The current squeeze suggests that Bitcoin may soon experience heightened turbulence, though the direction remains uncertain. With volatility compressed and technical pressure building, traders and investors are closely watching for a breakout or breakdown, as the next move could be swift and decisive.
As Bitcoin continues hovering near the upper end of its recent range, market vigilance is increasing, signaling that calm conditions may not last much longer.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.