- BTC price is hovering near the $30,000 mark, a level bulls may be keen to defend.
- Bitcoin’s historical volatility is at its lowest point in 2023.
- A short-term upside target could be above $34,000, while major support sits near $28,200.
Bitcoin’s price remains above $30,000 on Monday but is showing unusually low volatility. According to a key technical indicator, prices are tightly compressed, suggesting that an upcoming breakout in either direction could be significant.
Bitcoin price outlook: Bollinger Bands
On-chain analytics provider Glassnode reports that Bollinger Bands are very tight, with only a 4.2% range separating the upper and lower bands. This compression makes Bitcoin the quietest it has been since early January.
“The digital asset market continues to see remarkably little volatility, with the classic 20-day Bollinger Bands experiencing an extreme squeeze. A price range of just 4.2% separates the upper and lower Bollinger bands, making this the quietest Bitcoin market since the lull in early January,” Glassnode analysts tweeted, sharing a chart illustrating the squeeze.
Bitcoin price Bollinger Bands range. Source: Glassnode on Twitter.
In technical analysis, Bollinger Bands illustrate market volatility: tighter bands indicate lower volatility while wider bands reflect higher volatility. Traders use the indicator to help identify potential overbought or oversold conditions.
Bitcoin recently pulled back from above the upper band and is currently oscillating below the middle trendline. The lower Bollinger band provides support close to the important $30,000 level.
Data shows BTC declined from highs near $30,400 late Sunday to intraday lows around $30,079 on Monday morning. Trading around $30,180 at the time of reporting, the largest cryptocurrency by market capitalization is down roughly 0.5%.
Despite notable accumulation at these levels, bulls must defend this psychological support. If they fail, bears could push prices lower before a potential short squeeze drives BTC/USD toward a short-term target above $34,000. Key downside levels to monitor in the near term are $28,200 and $25,600.