Analysis of Bitcoin Bollinger Band Extreme Compression: 6 Past Instances of Breakouts Upward, Market Downturn May Be Coming to an End

TokenSherpa · 2026-01-23T05:52:11+00:00

Recently, Bitcoin's 3-day Bollinger Bands have shown extreme compression. In most similar past situations, this has indicated a price surge. The market may be in a consolidation phase or about to experience a trend change, with the key being whether the trading volume can confirm the direction.

TokenSherpa

2026-01-23 05:52:11

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【BlockBeats】The crypto analysis circle has recently been buzzing about an interesting phenomenon — Bitcoin’s 3-day Bollinger Bands are compressed to an extreme level. Since 2015, this kind of extreme compression has only occurred 8 times, including this recent instance. More importantly, out of the previous 7 times, 6 were followed by a sharp rally, with none continuing to decline.

What does this mean? Generally speaking, when Bollinger Bands are this tight, it indicates either that the market is entering a consolidation phase or that it is “holding its breath” before a major move. Coupled with the logarithmic MACD and Bollinger Band width indicators, it seems the market has indeed reached a critical point.

Based on past patterns, this kind of stagnation is unlikely to last much longer. The bottom area has been tested enough times, and the next move may depend on who presses the trigger first. In the short term, the key factor to watch is whether trading volume cooperates, as that is the real critical signal to confirm the direction.

BTC0,95%

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MetaReckt

· 10h ago

Six upward pushes? Sounds good, but will this be the eighth crash like last time haha --- Both Bollinger Bands and MACD are used, and volume also matters... Basically, just wait and see. Anyway, I don't believe this wave can take off directly --- Holding your breath is a perfect metaphor. It feels like the market is brewing a big move, but the question is whether it will go up or down... --- Historical patterns are useful, but who can say for sure if this time will be an exception? --- Is the stagnation about to break? Then I need to prepare mentally. Anyway, if it drops, I’ll endure it --- The 6:1 probability is right here. Those who don’t believe in superstition this time might end up losing out --- Who holds the trigger? I always feel that a major event is coming

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CoffeeNFTs

· 10h ago

Six rises and one fall? That data sounds unbelievable... It all depends on trading volume; without volume, it's all meaningless.

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RugPullProphet

· 10h ago

Six times up? What about the first time? Don't just talk about good news.

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NightAirdropper

· 10h ago

6 consecutive breakthroughs upward? Sounds good, but we also need to see if this is an exception this time. --- I've been tired of the Bollinger Band compression for a while. The key is still the trading volume; without volume, everything is pointless. --- Oh my god, someone finally said it. I've been saying the market has been so dull lately, it feels like it's about to explode. --- Historical patterns are good things, but the crypto world loves to break the rules. Don't rely too much on this. --- Hold your breath? I think it's more like holding your wallet, haha. --- Six upward pushes sound impressive, but honestly, the data volume is too small, so the statistical significance isn't high. --- Wait, trading volume is indeed the key. We can't tell the breakout direction yet. --- It's the same analysis method again. People who said this before are now losing big. Is that true? --- Who holds the trigger? The institutions, probably. Retail investors are just waiting to be hammered. --- I just want to know if this will be that exception this time. What if it goes down?

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New_Ser_Ngmi

· 10h ago

The Bollinger Bands are acting up again, raising prices 6 times? Why is there no movement this time? I'm so anxious. If the trading volume doesn't keep up, it's a false breakout. Don't be fooled, brother. This sluggish period is indeed tough, but the data is right here. You need patience. According to this logic, either this is the eighth exception, or it's silence before a big show. Volume is king; no matter how good the indicators look, without volume, it's all useless.

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PancakeFlippa

· 10h ago

Six rises and zero falls? Sounds a bit unbelievable, but the data is right here, so we have to believe it. Just worried that this time might be that "exception" haha

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