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\n\t\t\t\t\t\t\t\t\tCan BTC explode by over 300%, or is a huge crash incoming?\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
The past week or so has been rather untypically calm for the largest cryptocurrency, with only minor volatility.<\/p>\n
However, an important indicator suggests that major turbulence could be approaching, though the eventual direction remains uncertain.<\/p>\n
The X account Barchart, which focuses on traditional finance, stocks, charts, cryptocurrencies, and everything in between, revealed<\/a> that Bitcoin\u2019s Bollinger Bands have squeezed to their narrowest point since October 2023. The entity highlighted that the previous occurrence of this setup preceded a 330% rally over the following two years, culminating in the asset\u2019s all-time high above $126,000.<\/p>\n Repeating the scenario, though, shouldn\u2019t be taken as guaranteed. The technical indicator, developed by John Bollinger in the 1980s, consists of a moving average flanked by two channels (upper and lower) that widen in volatile markets and narrow when things calm down.<\/p>\n Squeezing the bands typically foreshadows a big move, yet it provides no clarity on whether a rally or a pullback is ahead. In March this year, the Bollinger Bands (on a monthly basis) tightened<\/a> to a level never seen before, and days later BTC tumbled from around $75K to approximately $65K.<\/p>\n In May 2025, the crypto community witnessed the opposite reaction. The Bollinger Bands squeezed<\/a> at a time when the asset was trading at under $95,000, while weeks later it soared beyond $110,000.<\/p>\n Yesterday (August 12), the US Bureau of Labor Statistics released<\/a> the Consumer Price Index data, and numerous analysts claimed the economic event could be followed by major volatility for BTC. X user Gerla noted<\/a> that each CPI report from August last year until now has been a precursor to severe turbulence and was sometimes followed by a double-digit price crash for BTC.<\/p>\n It is important to note that the most recent inflation results matched the previous expectations, which should be taken as a positive sign. X user Wealthmanager reminded<\/a> that the last three times this happened, BTC climbed by 7%, 10%, and 10%, respectively.<\/p>\n Crypto X has recently been flooded with analysts\u00a0presenting<\/a> strong arguments that<\/span>\u00a0the primary cryptocurrency may have already reached its bottom, potentially preparing for the next leg up. Nonetheless, the risks of a renewed correction remain, as previous estimations suggest<\/a> the cycle\u2019s floor might be reached sometime in October. Moreover, one should keep in mind that crypto tends to behave unusually and frequently moves against overall expectations.<\/p>\nAdditional Forecasts<\/h2>\n
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