Bitcoin’s Bollinger Band squeeze to 7.7% signals energy buildup, historically followed by major upside moves in bull markets.
Six past compression phases since 2019 preceded large breakouts, with most leading to immediate or eventual bullish momentum.
Bitcoin's price action near $100K aligns with consistent historical patterns where low volatility sparks explosive upward trends.
Bitcoin is flashing a powerful technical signal. Its Bollinger Band range has tightened to just 7.7%, the lowest in this bull cycle. Historically, such compression signals an upcoming surge in volatility. The market is showing signs of energy buildup. Price action is gearing up for a major move. In the context of a strong uptrend, this squeeze likely hints at an upward breakout. Similar setups have occurred six times during this cycle. Four of those led directly to growth. Two saw minor pullbacks before rallies resumed. This pattern adds weight to the current bullish outlook.
Bollinger Band Compression Suggests Market Readiness
The Bollinger Band range measures the distance between upper and lower price boundaries. Since 2019, Bitcoin has repeatedly reacted to compressions with big price moves. When the Bollinger range fell below 10%, market volatility returned with force.
Source: Axel Adler Jr
From 2019 to mid-2020, Bitcoin ranged between $3,000 and $10,000. Volatility surged often, with the band range hitting over 50%. During quiet moments, it dipped below 9%, flashing early breakout signs. These events preceded significant price action.
Between late 2020 and early 2021, Bitcoin’s climb to $60,000 saw Bollinger Bands widen sharply. The range spiked above 75%, tracking the steep ascent. Every breakout past upper bands confirmed growing momentum.
Historical Trends Reinforce Current Bullish Bias
The decline in 2021–2022 caused Bitcoin to drop from $60,000 to $20,000. Multiple compression stages appeared in spite of the decline. Before the downturn resumed, these pauses indicated short-term consolidations. Bitcoin prices varied from $15,000 to $25,000 between the middle of 2022 and the beginning of 2023. Once more, the Bollinger Bands compressed.
Bitcoin reached $40,000 by the beginning of 2023. The range expanded once more, indicating the power of the breakout. Bitcoin fluctuated between $40,000 and $70,000 between the middle of 2023 and the middle of 2024. Around local peaks, compression reappeared, frequently accompanied by market slowdowns.
Now in 2025, Bitcoin nears $100,000. The latest Bollinger Band squeeze suggests another powerful move is imminent. Moreover, previous trends support a continuation of this upward phase.
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