Bitcoin’s price could soon rise sharply as a top volatility signal reaches a record low.
- A major volatility indicator is at its lowest level ever for Bitcoin.
- In past cycles, this has led to strong price surges.
- Traders remain cautious and want more proof of a rally.
Bollinger BandWidth Hits Record Low
The Bollinger BandWidth for Bitcoin is showing unusual behavior. This indicator tracks how much Bitcoin’s price moves. Right now, it is tighter than ever before, according to data from Cointelegraph Markets Pro and TradingView.
Historically, when this indicator gets very low, Bitcoin’s price often climbs sharply soon after. Macro strategist Gert van Lagen says similar patterns in the past led to major price spikes. The last time this happened was in late 2023, when Bitcoin doubled in just four months.
Traders Still Not Sure of a Rebound
Despite this optimistic signal, some traders are not ready to celebrate. Bitcoin recently dropped but has bounced back slightly. On Wednesday, BTC/USD reached a two-week high near $94,000.
Popular trader Daan Crypto Trades pointed out that this bounce looks good, but Bitcoin must hold above the current level to confirm a real rally. Other traders echo this view, noting weak buying activity and cautious behavior in indicators like MACD and RSI on short timeframes.
Looking Back and Ahead
Van Lagen compared today’s setup to Google’s stock before the 2008 crash. He thinks Bitcoin may hit a final high before entering a long bear market. The pattern of lower highs in the indicator trails could signal a coming shift in market momentum.
Another analyst, Rekt Capital, noted that Bitcoin needs to close the year above $93,500 to finish 2025 with a green yearly candle. That would keep its long-term structure strong and on course with past cycles.
Source: cointelegraph.com