Bitcoin (BTC) is coiled tighter than a spring, based on AI evaluation of a important technical indicator.
Grok’s overview of historic Bollinger Band squeezes suggests the present excessive compression might precede a parabolic surge, probably echoing previous features exceeding 4,600%.
The Squeeze Earlier than the Storm
The thrill began when writer and podcast host Scott Melker asked technical analyst and inventor of the Bollinger Bands, John Bollinger, how usually Bitcoin’s each day BBs have been as tight as they at the moment are.
Nonetheless, one other consumer prompted Grok, X’s in-house AI software, for a solution to the identical query. Responding on August 1, the AI revealed the bands have narrowed to a bandwidth of roughly 0.018, the tightest studying since February 2025.
It additionally recognized 5 related cases of maximum tightness, under 0.03 bandwidth, since 2011. These have been January 2013, September 2016, January 2023, August 2023, and February 2025. The historic aftermath is hanging, with the squeezes usually coming earlier than substantial bullish breakouts.
“Historic information exhibits Bollinger squeezes under 0.03 bandwidth usually precede 100%+ rallies, like post-2016’s 4600% surge,” claimed Grok. “With present tightness at ~0.018, volatility looms—seemingly upward given Bitcoin’s development.”
Based on the AI software, among the most dramatic examples included the interval following September 2016, the place the value of Bitcoin pumped by quadruple digits, shifting to just about $20,000 inside 15 months. Submit-January 2013 noticed an much more eye-watering 8,560% climb. Extra not too long ago, the August 2023 squeeze led to a 152% acquire over seven months.
Whereas Grok projected a 50% to 200% upside over the subsequent 3 to 12 months, with BTC probably ending August anyplace between $130,000 and $145,000, it cautioned that course isn’t assured. The final time the Bollinger Bands have been this tight, in February 2025, BTC was hit by a 25% pullback that noticed its worth drop from round $102,000 to under $84,000 by the tip of that month.
Macro Winds and Market Mechanics
This technical pressure is unfolding towards a backdrop of serious macroeconomic sensitivity and protracted consolidation. As CryptoPotato reported earlier, BTC’s worth went up as excessive as $119,000 following the U.S. Federal Reserve’s determination to maintain rates of interest unchanged for a fifth straight assembly.
Nonetheless, it dropped to a multi-week low of underneath $114,500 quickly after U.S. President Donald Trump announced a raft of tariff changes on items imported from a number of international locations, together with an extra 10% on Canadian merchandise.
The OG cryptocurrency has since improved marginally, having climbed again to only underneath $115,000 on the time of this writing. This, nonetheless, nonetheless displays a 3% drop within the final 24 hours and a 4.1% dip over the previous two weeks, though it stays up 78% year-on-year.
Binance Free $600 (CryptoPotato Unique): Use this link to register a brand new account and obtain $600 unique welcome supply on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE place on any coin!