Bitcoin Is Coiling for an Explosive Move – But Which Direction?

One important technical indicator suggests that the primary cryptocurrency might be approaching a period of intense short-term volatility.

However, the exact direction of the next big move remains unclear.

Fasten Your Belts

The popular analyst Ali Martinez disclosed on X that BTC’s Bollinger Bands on a 3-day scale have started squeezing. Such a development typically occurs amid periods of low volatility and has historically been followed by a huge price swing.

It is important to note that the setup has been a precursor of both strong rebounds and violent plunges. In mid-March, for instance, the Bollinger Bands (on a monthly basis) tightened to levels never seen before. Just a few days later, BTC plummeted from nearly $75,000 to around $65,000.

It was the complete opposite at the beginning of May last year. The Bollinger Bands squeezed at a time when the cryptocurrency was trading at less than $95,000, while later that month it exploded above $110K.

Given the ongoing bear market, some might speculate that a move to the downside is the more likely option for BTC in the near term. The upcoming FOMC meeting supports that thesis.

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