FameEX Hot Topics | Bitcoin Approaches Critical Bollinger Band Squeeze, Breakout Likely

Bitcoin may be gearing up for a major price move, according to a widely used technical indicator. Popular crypto analyst and YouTuber Crypto Rover highlighted the tightening of Bollinger Bands — a volatility-based tool used to gauge price momentum. These bands, which measure the upper and lower boundaries of a trading range, have now contracted to their narrowest point in over a year. This level of compression often precedes a significant breakout, prompting analysts to predict that Bitcoin could be preparing to challenge or even surpass its previous all-time high.

In a recent post on social platform X, Crypto Rover pointed to the three-day Bitcoin chart, noting that the Bollinger Bands haven’t been this tight since February 2024. Back then, Bitcoin soared by nearly 75%, climbing from under $43,000 to its record high of $74,000. With Bitcoin now holding above $108,000, Rover and others believe a similar breakout could push the price toward $190,000 “Big pump incoming!”.

Several other analysts share this optimistic outlook. Cantonese Cat, another crypto trader, commented that the current Bollinger Band squeeze is the most extreme in over a year, suggesting that a larger move is imminent. Market commentator Frank Fetter echoed this view, stating that the bands have compressed to a 9.4% price range — the lowest seen in a year. Even John Bollinger, the creator of the Bollinger Bands indicator, joined the conversation. While he had earlier warned that multiple rejections near $110,000 could signal a local top, he has since shifted to a more bullish stance, saying Bitcoin is likely setting up for an upward breakout.

Beyond technical indicators, macroeconomic and market fundamentals are also supporting the bullish case. Bitcoin’s price is being boosted by sustained institutional interest, including ongoing demand through spot ETFs and growing treasury allocations. On higher timeframes, Bitcoin is forming a textbook “cup-and-handle” pattern — a bullish signal projecting a potential rally to $230,000. Meanwhile, upcoming U.S. tariff decisions and the anticipated “Crypto Week” in Washington D.C. may further ignite bullish sentiment.

On-chain data further reinforces the positive trend. The MVRV ratio, which compares market value to realized value, currently stands at 2.23 — above the 365-day average of 2.15. According to CryptoQuant analyst Burakkesmeci, this positioning historically supports continued upward momentum. Combined with global M2 money supply expansion, Bitcoin could be heading for new highs in the near future.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.