Bitcoin's Bollinger Bands Squeeze Signals Potential Major Price Swing
As of early January 2026, Bitcoin is trading near $88,600 after spending two weeks between $85,000 and $90,000. During this period, the Bollinger Bands gap narrowed to under $3,500, marking the tightest squeeze since July according to TradingView data.
Historically, such squeezes in Bollinger Bands have preceded significant price swings. For example, a late July squeeze preceded a surge from roughly $100,000 to $126,000 following a $115,000-$120,000 range. Conversely, a similar squeeze in late February was followed by a slide to $80,000 after trading between $94,000 and $98,000.
Since at least 2018, these Bollinger Bands squeezes have been reliable indicators of impending volatility explosions in Bitcoin's price. The current narrow range and band squeeze suggest that prices could move rapidly in either direction, so traders are advised to remain vigilant as the market may experience a major price swing soon.
