Bitcoin is coiling for a major move after weeks of unusually low volatility, according to Bollinger Bands readings.
Over the past two weeks BTC has largely oscillated between $85,000 and $90,000. That quiet price action has pushed the distance between Bitcoin’s Bollinger Bands — the two standard-deviation envelopes plotted around the 20-day simple moving average — down to under $3,500, the narrowest gap since July, data from TradingView show. Traders call this pattern a “Bollinger Bands squeeze,” a compression that typically precedes a sharp expansion in volatility.
History backs that interpretation. A late‑July squeeze capped a two‑week sideways grind near $115k–$120k, then preceded a three‑month period of wild swings (roughly $100k to $126k). A similar early‑year squeeze in late February followed by a rapid slide to about $80k by month‑end. Since at least 2018, Bollinger Band compressions have often been reliable early signals of impending volatility spikes.
What matters now is direction: a decisive break above the recent range could trigger a fast upside run, while a breakdown below support could set off a steep drop. That makes this an important moment for traders to monitor position sizing and risk controls rather than assume trend continuation.
At the time of writing Bitcoin was trading around $88,600, up just over 1% on the day. Data source: TradingView.
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