Bitcoin’s tight trading range signals potential for major swing
Bitcoin has entered a period of unusually low volatility, indicating the market could be poised for a significant move.
Over the past two weeks, BTC has traded between $85,000 and $90,000. The distance between its Bollinger Bands — a key volatility measure set two standard deviations above and below the 20-day moving average — has narrowed to less than $3,500, the tightest level since July, according to TradingView.
Historically, such Bollinger Band “squeezes” often precede sharp price swings. In late July, BTC consolidated between $115,000 and $120,000 for two weeks before climbing to $126,000. A similar squeeze in February foreshadowed a decline from $94,000–$98,000 down to $80,000.
These patterns have consistently signaled periods of heightened volatility since at least 2018, suggesting traders should stay alert. At the time of writing, bitcoin traded around $88,600, up just over 1% on the day.
