The "explosive trend" of Bitcoin is imminent, with the Bollinger Bands touching their narrowest point

BlockBeats reports that on August 1, a key Bitcoin trading indicator reached its "narrowest point" in a year. The last time this happened, Bitcoin rose by 20% within four months. Cryptocurrency trader and analyst Matthew Hyland suggests that "a fluctuation is almost imminent," while pointing out that Bitcoin's Bollinger Bands (a tool for measuring asset momentum and volatility within a specific range) have reached their "third highest point" since its inception in January 2009.

He is not the only trader who has noticed this new pattern. Cryptocurrency trader MaxBecauseBTC added: "The Bollinger Bands of Bitcoin's weekly timeframe have only been this tight twice in history...in April 2016 and August 2023."

Kristoph Jeffers, COO of Three Jay Partners, wrote on X: "What surprises me is that the Bollinger Bands of Bitcoin's weekly chart are now narrower than those of the daily chart."