John Bollinger, a prominent technical analyst and creator of Bollinger Bands, recently took to Twitter to suggest that Bitcoin (BTC) is on the verge of experiencing a squeeze.
In his tweet, Bollinger stated that the current bandwidth value for the flagship cryptocurrency is the lowest in 96 bars and, although he prefers a minimum of 125 periods, this should alert savvy traders of an impending change in the volatility regime.
The flagship cryptocurrency is currently trading at $29,188 on the Bitstamp exchange.
Bollinger Bands are a popular technical analysis tool that measures an asset's price volatility by plotting standard deviations above and below a moving average. When the bands contract or "squeeze," it typically indicates that a significant price movement, either up or down, is about to occur.In a follow-up tweet, Bollinger shared another view of the BTC squeeze using TrendSpider's multiple time frame analysis, revealing that a squeeze and expansion are already underway on the higher time frame, while a squeeze is setting up on the lower time frame.
This prediction comes after Bollinger's previous Twitter exchange with fellow analyst Bob Loukas, who noted that Bitcoin appeared to be "coiling and tightening" and building pressure. Bollinger agreed with the bullish sentiment, saying, "We are almost in a squeeze."
The anticipation of a Bollinger Bands squeeze implies that the cryptocurrency market could soon witness increased volatility and a significant price movement for Bitcoin.