The chart shows BTC’s daily price swings in candlestick format, with Bollinger Bands overlaid. Bollinger bands are volatility bands that sit two standard deviations above and below the 20-day simple moving average of a cryptocurrency’s spot price.
These bands tend to tighten when an asset trades in a narrow price range for a long time. That’s what’s happening right now.
The bands are at their tightest at least since January. A prolonged tightening, often called squeeze, often ends with a strong move. It’s like a compressed spring that stores energy until it finally releases, launching the price sharply higher or lower.
Put simply, a big move could be brewing.
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