Opinion: Bitcoin's volatility range has been compressed to a new level of price fluctuation.

DeepFlowTech · 2026-01-02T05:39:57+00:00

Recently, Bitcoin's price has been fluctuating narrowly between $85,000 and $90,000, with Bollinger Bands narrowing below $3,500, indicating a low-volatility market, which may suggest an imminent sharp price movement. Historical data shows that such narrowing is often accompanied by significant price changes.

DeepFlowTech

2026-01-02 05:39:57

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Deep Tide TechFlow News, January 02, According to Coindesk, over the past two weeks, Bitcoin prices have been fluctuating narrowly between $85,000 and $90,000. Based on TradingView data, the difference between its Bollinger Bands (volatility bands, located two standard deviations above and below the 20-day simple moving average of the asset price) has narrowed to below $3,500, the lowest level since July.

This so-called Bollinger Band squeeze indicates that the market is in a low-volatility phase, accumulating energy in preparation for the next major move. Historical experience shows that such a squeeze often precedes sharp price volatility.

For example, the last Bollinger Band squeeze in late July ended a two-week sideways consolidation between $115,000 and $120,000. This squeeze paved the way for expansion over the next three months, with prices fluctuating wildly between $100,000 and $126,000.

A similar pattern also appeared in late February: prices fluctuated between $94,000 and $98,000, the Bollinger Bands narrowed, and then by the end of the month, prices fell to $80,000.

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