Bitcoin is currently exhibiting a technical pattern known as a Bollinger Band squeeze, a development analysts interpret as a precursor to a potential bullish breakout.
The volatility range has contracted significantly, reaching 7.7%, marking one of the narrowest levels observed for the cryptocurrency in recent times. This compression often precedes periods of increased price movement.
Historical patterns associated with similar technical setups suggest that minor price retracements may occur before any sustained upward trend materializes. Such pullbacks are typically viewed as consolidation phases within the broader bullish signal.
Adding to the potential bullish sentiment, Bitcoin spot exchange-traded funds (ETFs) recently recorded a substantial net inflow of $770 million. This significant capital influx highlights renewed institutional and investor interest in the asset.