Bitcoin has been trading within a narrow range between $85,000 and $90,000 over the past two weeks, reflecting low short-term market volatility. According to TradingView, the gap between the Bollinger Bands has tightened to less than $3,500 — the smallest since July. At the time of writing, Bitcoin was trading around $88,600, showing a gain of just over 1% in the last 24 hours. This set of indicators is known as a "Bollinger Bands squeeze" and is viewed as a signal of energy accumulation ahead of the next major move.
Current Bitcoin Market Situation
The $85,000–$90,000 range has been established as the main price consolidation zone within which trading occurs. A detailed overview of current levels can be found in the Bitcoin price today article, which discusses support and resistance near these zones. The Bollinger Bands squeeze means that volatility measured by these bands has decreased, and the bands themselves — which represent two standard deviations around the 20-day moving average — have noticeably narrowed.
History Repeats: Previous Bollinger Bands Squeeze Cases
In late July, the last Bollinger Bands squeeze ended a two-week sideways trend within the $115,000–$120,000 range and preceded a subsequent three-month expansion marked by strong price fluctuations. This example shows that after a "squeeze" phase, a period of high volatility and range expansion can begin.
A similar scenario occurred in late February: the $94,000–$98,000 range compressed, followed by a drop to $80,000 by the end of the month. Historically, Bollinger Bands have reliably signaled volatility spikes at least since 2018, highlighting their usefulness as an indicator of sharp price moves.
What to Expect Going Forward?
A bands squeeze does not predict direction but indicates a potential increase in price movement intensity soon. This means the market may shift into one of several common scenarios, each requiring its own risk management approach.
- Range expansion upward — strong upward price swings following the squeeze period.
- Range expansion downward — sharp price declines after the squeeze, similar to the February case.
- Prolonged sideways movement with gradually increasing volatility amplitude without a sharp one-sided move.
For more detailed scenario assessments and risk analyses, you can refer to materials with forecasts and analyses, such as the Bitcoin price forecast, which explores possible developments.
Why This Matters
For miners operating from one to a thousand devices, it is important to understand that volatility compression itself does not change the volume of coins generated or the technical parameters of the equipment. However, changes in price volatility affect actual revenue when selling mined cryptocurrency and the timing of converting it into rubles.
Additionally, sharp price fluctuations may require adjustments to sales plans, reserve funds, and energy consumption management, especially if miners convert part of their revenue into fiat or pay variable electricity rates. Therefore, understanding the current market structure helps make more informed operational decisions.
What to Do?
If you operate between one and a thousand devices, practical steps can help reduce operational risks and prepare for increased volatility. Start with basic measures that don’t require additional forecasting but focus on managing cash flow and equipment.
- Inspect and maintain equipment: scheduled maintenance and temperature monitoring help avoid downtime during market fluctuations.
- Consider a sales distribution strategy for mined cryptocurrency: fixed sales portions or threshold orders can help manage fiat inflows without trying to "time the top."
- Maintain a reserve fund to cover electricity and maintenance costs during temporary income drops; this reduces the risk of forced sales at unfavorable times.
- Monitor indicators on TradingView, including Bollinger Bands, to understand market phase changes, but don’t rely solely on one tool.
- Analyze electricity tariffs and, if possible, take advantage of fixed or off-peak rates to optimize costs.