CMC News

$BTC Compression Reaches Record Level as Analysts Predict Extreme #Volatilty

$BTC's weekly Bollinger Bands reached their tightest compression in #crypto history, signaling potential major price movement ahead. The technical indicator typically precedes significant volatility expansions and breakout events across financial markets.

Popular crypto analyst "Mr. Anderson" noted the historic compression levels on Tuesday, explaining that when volatility compresses this tightly, expansion inevitably follows. Price movements typically test outer bands rapidly once expansion begins, creating substantial trading opportunities for market participants.

CoinW exchange Chief Strategy Officer Nassar Achkar described the compression as "calm before a significant volatility storm." He suggested that while a final September shakeout toward $100,000 remains possible, convergence of negative funding rates and institutional #ETF inflows favor bullish outcomes.

Hunters of Web3 founder "Langerius" emphasized that compression this extreme rarely resolves quietly. Historical patterns show similar tight compressions preceded major price movements, including July's surge from $108,000 to new all-time highs over $122,000 within days.

However, Glassnode researcher "CryptoVizArt" disagreed with bullish interpretations, arguing overall volatility has declined as $BTC matured. The analyst stated this represents normal market evolution rather than predictive signals, dismissing compression observations as lacking real forecasting value.