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Analyst: Both Bitcoin BBR and ADX indicators point to the market being in "calm before the storm"
On August 12, on-chain analyst Axel Adler Jr posted that Bitcoin Bollinger Bandwidth (BBR) has narrowed to about 3.8%, one of the lowest levels in nearly two years. In early July, the indicator was still in double digits, and after BBR narrows, market volatility tends to expand.
At the same time, the ADX index has also fallen to 11, far below the trend-strength threshold of 25. This means the market has no clear dominance from either long positions or short positions. Price continues to churn back and forth within a narrow range, suggesting a lack of sustained directional momentum.
Taken together, these two independent indicators point to the same conclusion: the market may be in an extremely compressed state, with the prior energy for a major breakout accumulating. However, this pattern does not imply a specific direction.
In summary, for the market to achieve a genuine upside breakout, it must satisfy two conditions at the same time: after BBR squeeze, it starts to expand, and ADX rises above 25. Until then, BTC may remain in a consolidation pattern, and the phenomenon of potential breakouts—without confirmation—will likely continue.
#BBR #ADX
On August 12, on-chain analyst Axel Adler Jr posted that Bitcoin Bollinger Bandwidth (BBR) has narrowed to about 3.8%, one of the lowest levels in nearly two years. In early July, the indicator was still in double digits, and after BBR narrows, market volatility tends to expand.
At the same time, the ADX index has also fallen to 11, far below the trend-strength threshold of 25. This means the market has no clear dominance from either long positions or short positions. Price continues to churn back and forth within a narrow range, suggesting a lack of sustained directional momentum.
Taken together, these two independent indicators point to the same conclusion: the market may be in an extremely compressed state, with the prior energy for a major breakout accumulating. However, this pattern does not imply a specific direction.
In summary, for the market to achieve a genuine upside breakout, it must satisfy two conditions at the same time: after BBR squeeze, it starts to expand, and ADX rises above 25. Until then, BTC may remain in a consolidation pattern, and the phenomenon of potential breakouts—without confirmation—will likely continue.
#BBR #ADX
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