A widely used Bitcoin technical analysis indicator suggests that BTC is on the verge of a “big move” toward new all-time highs . Bitcoin's Bollinger Bands have reached an unusually tight constriction , a phenomenon historically preceding significant price movements.
In a July 6 post on X, crypto YouTuber Crypto Rover said that Bitcoin was positioned for an upward breakout based on Bollinger Bands analysis . Bollinger Bands, a Bitcoin indicator used by traders to assess momentum and volatility within a certain range, has reached its tightest point in 12 months , signaling that a significant price move may be underway or imminent. Crypto Rover shared a chart showing that Bitcoin Bollinger Bands are “tighter than they've been” since February 2024 across three-day timeframes.
John Bollinger, the inventor of Bollinger Bands, has indicated that bitcoin may be poised for an upside breakout , as noted in a recent social media post. Bollinger, an American author and financial analyst who developed this technical analysis tool in the early 1980s, stated, “Bitcoin looks to be setting up for an upside breakout. $BTCUSD More as the week gets going.”
Analysts and traders are keenly observing this "squeeze" in volatility , with many predicting an imminent upside breakout for the world's leading cryptocurrency, potentially propelling it towards new all-time highs . Bollinger Bands, a widely utilized technical analysis tool, consist of a middle simple moving average and upper and lower bands that expand and contract with market volatility. When these bands narrow significantly, it indicates a period of low volatility and consolidation, often acting as a precursor to a sharp price swing in either direction. For Bitcoin, this "squeeze" has a strong historical correlation with subsequent bullish rallies.
Several analysts, including Crypto Rover, Cantonese Cat, and Frank Fetter, have all pointed to this critical juncture, with expectations of a "big pump incoming" or a "bigger move coming" for BTC . Even John Bollinger, the creator of the indicator himself, recently confirmed this bullish sentiment, stating that Bitcoin "looks to be setting up for an upside breakout."