Analysis: BTC Bollinger Bands have reached one of the tightest levels in history, indicating that the market may experience significant Fluctuation

Odaily Planet Daily News According to technical analyst Tony Severino in a recent article, BTC is about to experience a major price Fluctuation as its Bollinger Bands are showing one of the tightest formations in history. When the Bollinger Bands are at their tightest level, it is usually referred to as “Bollinger Squeeze”, indicating low Fluctuation and potentially laying the foundation for a strong price breakthrough. Severino pointed out that the Bollinger Bands of BTC are indicators used to evaluate its price fluctuation and determine the trend direction, which is one of the closest three instances in history within a two-week time frame. From a historical perspective, this kind of contraction led to a substantial Fluctuation in the price of BTC. A similar situation occurred in April 2016, when the Bollinger Bands tightened significantly for the first time. Subsequently, the price of BTC started to pump significantly in the following months, marking the beginning of a bullish trend. Another key example occurred in July 2023, when the Bollinger Bands tightened extremely. Similar to April 2016, it was followed by a significant pump in price. It should be noted that although tightening the range indicates the possibility of a significant fluctuation, it cannot predict the direction of the fluctuation. The result could be a significant pump or a significant drop. For example, a similar pattern observed in 2018 led to a significant drop in BTC price. Historical data shows that BTC has pumped seven times after nine tightening ranges. (Crypto Briefing)