Bollinger Bands Tightest on Record as Bitcoin Nears $80K

Monthly Bollinger Bands for Bitcoin have contracted to their tightest reading on record, a pattern traders associate with an increased chance of large price swings. Attention among market participants is centered on the $78,000–$80,000 resistance zone.

Bollinger Bands measure price volatility around a moving average; when the bands squeeze, volatility often expands later. Analyst Cantonese Cat wrote that the historic monthly squeeze “will lead to a very powerful move when it expands.”

Coinvo Trading reported that Bitcoin’s monthly relative strength index has dropped to levels last seen in late 2022 and that price has reached a long-term support trend line that marked prior macro lows. The firm noted a similar setup preceded a 350% rise to a prior high of $73,800.

On the weekly chart, a bullish MACD crossover has been recorded. Recent price action included a roughly 6% gain that filled a $74,000–$77,000 gap in CME futures. Traders are watching the next CME gap above $80,000, opened in early February.

Order book data show concentrated sell orders between $78,000 and $80,000, indicating heavy sell pressure that could slow an advance if sellers defend that range. Market participants say a daily close above $76,000–$78,000 would be read by some as confirmation that buyers are in control and could clear the path toward targets near $84,000.

Michael van de Poppe, founder of MN Capital, projected: “Likely we’ll test it first, come back down for a little, find extra stamina, and then we’ll push through to $86K.”

Technical indicators do not provide a timeline. Bollinger Band squeezes can precede rapid moves in either direction, and traders look for confirmation from price action, volume and order flow before adjusting positions.