FameEX Hot Topics | Bitcoin Bollinger Bands Tighten, Signaling Imminent Upside Breakout

A widely followed technical indicator is signaling that Bitcoin may be on the brink of a major price movement. According to popular crypto YouTuber Crypto Rover, the Bollinger Bands — a volatility metric that measures price movement within a range — have tightened to their narrowest point in over a year. This compression often precedes a large price breakout, and analysts believe Bitcoin could soon make a strong move toward a new all-time high.

In a post on X, Crypto Rover noted that the Bollinger Bands on Bitcoin’s three-day chart are the tightest they’ve been since February 2024. At that time, Bitcoin surged nearly 75%, reaching its then-all-time high of $74,000 after breaking out above the upper Bollinger Band boundary. With Bitcoin now holding above $108,000, Rover and others speculate that a similar move could push the price to as high as $190,000, “Big pump incoming!”.

Other market observers have echoed the bullish sentiment. Crypto analyst Cantonese Cat emphasized that the current squeeze is tighter than it’s been in over a year, while market commentator Frank Fetter pointed out that the bands are at their yearly lows — currently spanning a narrow 9.4% price range. Even John Bollinger, the creator of the indicator, weighed in on the development. After previously warning that multiple rejections near $110,000 could form a local top, he now believes Bitcoin is “setting up for an upside breakout.”

Beyond technical patterns, broader market factors are also pointing to continued bullish momentum. Institutional demand remains strong, especially through spot Bitcoin ETFs and corporate treasuries. Technically, Bitcoin’s “cup-and-handle” formation on higher timeframes projects a potential breakout to $230,000. Meanwhile, geopolitical factors such as upcoming U.S. tariff deadlines and a high-profile “Crypto Week” event in Washington D.C. could fuel further investor enthusiasm and risk-on sentiment.

On-chain data adds further support to the bullish case. The Market Value to Realized Value (MVRV) ratio stands at 2.23, above its 365-day simple moving average of 2.15, according to CryptoQuant. Analyst Burakkesmeci noted that historically, when MVRV stays above its long-term average, Bitcoin tends to remain in an uptrend. Combined with continued expansion of the global money supply (M2), analysts suggest Bitcoin could reach $170,000 or even higher in the coming months.

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