Bitcoin Set for ‘Explosive Move’ as Bollinger Bands Tighten to 12-Month Low

Bitcoin may be on the verge of a significant price movement as a key volatility indicator, the Bollinger Bands, has tightened to its lowest point in 12 months. This suggests a major breakout could be imminent.

Crypto trader and analyst Matthew Hyland highlighted this development in a July 31 analysis video, pointing out that Bitcoin's Bollinger Bands are at their third tightest point in history on the weekly chart since January 2009. Hyland stated, "A move is almost imminent."

Hyland is not alone in recognizing this pattern. Crypto trader MaxBecauseBTC noted that the weekly Bollinger Bands have only been this tight twice before — in April 2016 and August 2023. Kristoph Jeffers, Chief Operating Officer of Three Jay Partners, also commented on the anomaly, saying, "It’s wild to me that the Bitcoin weekly Bollinger Bands are tighter than the daily Bollinger Bands right now."

Since 13 March, BTC has been consolidating within a narrow range of about 25%, between a high of $73,679 and a low of $55,849. However, Hyland believes this prolonged period of consolidation is nearing its end. "Now it is starting to squeeze, so the moment is coming, it will probably come within a month at this point," he said.

Traders often note that the longer the consolidation, the more substantial the breakout tends to be. Hyland compared the current pattern to July 2023, which preceded a 20% surge in Bitcoin over the next four months.

"The weekly Bollinger Bands reached their tightest points last year at the end of July," Hyland explained. "We are seeing the same thing once again." Between July and November 2023, Bitcoin rose by about 20%.

If Bitcoin follows a similar trajectory, its current price of $63,845 could surge to a new all-time high of $76,614 by November, according to CoinMarketCap data. Hyland suggested that while it might take a few more weeks, Bitcoin is on the brink of an "explosive move."
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