Bitcoin (BTC) Coils Tight—Here Are 3 Signs a Monster Move Is Coming
Volatility compression hits extremes—BTC’s Bollinger Bands are the tightest since the 2020 breakout. The calm before the storm? Traders are leaning in.
Exchange reserves hemorrhage—$2B in Bitcoin left platforms last week. When coins flee exchanges, supply shock follows. Cue the institutional ’we told you so’ press releases.
Derivatives heat up—Open interest spikes while funding rates stay neutral. This combo? Pure gunpowder. Just add one spark.
Wall Street analysts are already drafting their ’crypto winters over’ reports—right after deleting their ’death of Bitcoin’ thinkpieces from last quarter.
Squeezing BBs
Popular crypto analyst Ali Martinez highlighted the reduced volatility as of late, which is shown by the squeezing Bollinger Bands. The momentum indicator, composed of three lines with the Simple Moving Average (SMA) in the middle, has tightened on the 4-hour BTC chart, and Martinez warned that “a major price move could be just around the corner.”
The Bollinger Bands are squeezing on the 4-hour chart for #Bitcoin $BTC! A major price move could be just around the corner. pic.twitter.com/uvrel12QVp
— Ali (@ali_charts) May 1, 2025
Although the BBs are a secondary technical tool and do not provide a clear indication of the direction of the move, the analyst said BTC has a notable chance to head north if it remains above the key support of $93,198, which has held its price on a couple of occasions in the past week.
Moreover, BTC could surge toward a new all-time high of around $114,230 if it breaks above $95,870, he added.
If #Bitcoin $BTC breaks and holds above $95,870, the next key target, based on the MVRV Pricing Bands, is $114,230. pic.twitter.com/iKPJvVaUtA
— Ali (@ali_charts) April 30, 2025
Accumulation Skyrockets
The second and third signs hinting at an upcoming big BTC move are somewhat similar, but they are worth differentiating. On one hand, we have the growing accumulation of whales. As reported yesterday, these market participants had acquired $4 billion worth of Bitcoin within just two weeks.
On the other hand, there are the BTC ETFs, which broke the previous negative streak and recorded a positive one from April 17 to April 30. Although this trend came to an end yesterday, it was with a minor $56.3 million in outflows, which is far below the billions attracted before that.
Martinez highlighted these substantial purchases and noted that the BTC Accumulation Trend Score has neared 1, which is a clear indication of larger entities going on a shopping spree.
The #Bitcoin $BTC Accumulation Trend Score is nearing 1, signaling that larger entities, or a significant portion of the network, are actively accumulating. pic.twitter.com/eJavuF8Dmb
— Ali (@ali_charts) April 30, 2025
Bonus: The number of bitcoins sitting on exchanges has been gradually declining, reaching a five-year low. While this is another bullish sign for the future price movements of the underlying asset, Swan’s analysts explained why it hasn’t reacted yet.
