Bitcoin Bollinger Bands echo move that ended in 40% gains in January

BTC price should see a "strong" reaction now that Bitcoin Bollinger Bands are at their most compact since the start of 2023.

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Bitcoin (BTC) is lining up for a volatility burst that could rival its 40% gains in January, according to on-chain data.

In the latest edition of its weekly newsletter, “The Week On-Chain,” analytics firm Glassnode has revealed the tightest Bollinger Bands since the start of 2023.

BTC price is due to “strong moves” – but direction unknown

BTC price has been operating in a tight range for an entire month, using $30,000 as a focal point for sideways behavior.

This, according to popular analyst Aksel Kibar, tests both bulls and bears.

“It looks like $BTCUSD is wearing out the patience of many traders,” he summed up on July 21.

"This is usually the condition you see before strong moves. Not sure of direction though. I'll stick to my well-defined limits. I know increased volatility is just around the corner. Capture directional movement."

Annotated BTC/USD chart. Source: Aksel Kibar/Twitter

Based on the behavior of the Bollinger Bands, this move should come sooner rather than later.

The classic volatility indicator is currently printing a telltale sign that the days of BTC price action within a range are numbered.

Bollinger bands use the standard deviation around a simple moving average to determine when a...