Bitcoin (BTC<\/a>) is lining up a burst of volatility that could rival its 40% January gains, on-chain data suggests.<\/p>\n In the latest edition of its weekly newsletter,The Week On-Chain<\/a>,\u201d analytics firm Glassnode revealed the tightest Bollinger Bands since the start of 2023.<\/p>\n BTC price has acted in a tight range for an entire month, using $30,000 as a focal point for sideways behavior.<\/p>\n This, popular analyst Aksel Kibar says, is putting both bulls and bears to the test.<\/p>\n \u201cSeems like $BTCUSD is exhausting many traders’ patience,\u201d he summed up<\/a> on July 21.<\/p>\n \u201cThat is usually the condition you see before strong moves. Not sure about the direction though. I will stick with my well-defined boundaries. I know that increased volatility is around the corner. Capture the directional move.\u201d<\/p><\/blockquote>\n According to Bollinger Bands behavior, that move should come sooner rather than later.<\/p>\n The classic volatility indicator<\/a> is currently printing a telltale sign that the days of rangebound BTC price action are numbered.<\/p>\n Bollinger Bands use standard deviation around a simple moving average to determine when an asset’s price is due to a shift in trend.<\/p>\n On BTC\/USD, its upper and lower bands are unusually close together at present \u2014 more compact, in fact, than at any time since Bitcoin began its 2023 upside.<\/p>\n \u201cThe digital asset market continues to see remarkably little volatility, with the classic 20-day Bollinger Bands experiencing an extreme squeeze,\u201d \u201cThe Week On-Chain\u201d commented. <\/p>\n It added that with a range of just 4.2%, this marked the “quietest BTC market since the lull in early January.”<\/p>\n At the time, Bitcoin saw a breakout which then continued throughout the month, bringing January gains to around 40%<\/a>,<\/p>\n Continuing, Glassnode noted that at current levels, there was little by way of active selling \u2014 either for profit or loss.<\/p>\nBTC price due to “strong moves” \u2014 but direction unknown<\/h2>\n
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Bitcoin hodlers channel early 2019<\/h2>\n
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