TechFlow news, January 2nd, according to Coindesk reports, over the past two weeks, Bitcoin's price has been fluctuating narrowly between $85,000 and $90,000. According to data from TradingView, the spread between its Bollinger Bands (volatility bands, located two standard deviations above and below the 20-day simple moving average of the asset price) has narrowed to below $3,500, the lowest level since July.
This so-called Bollinger Band squeeze indicates that the market is in a period of low volatility, accumulating energy and preparing for the next significant fluctuation. Historical experience shows that such narrowing is often followed by sharp price movements.
For example, the last Bollinger Band squeeze in late July ended a two-week consolidation between $115,000 and $120,000. This squeeze paved the way for the subsequent three-month expansion, with prices fluctuating violently between $100,000 and $126,000.
A similar pattern also appeared in late February: prices fluctuated between $94,000 and $98,000, the Bollinger Bands narrowed, and then by the end of the month, the price dropped to $80,000.
