The indicator predicted the beginning of a period of high turbulence for Bitcoin
Date: 2025-09-11 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Technical observations on the crypto market have attracted particular attention from investors. According to analyst Matthew Hyland, Bollinger Bands (BB) on the monthly Bitcoin chart have narrowed to a record low. This signals the market's readiness for a phase of "extreme" volatility.
Bollinger Bands are used to assess market fluctuations: approaching the upper limit most often indicates that the asset is overbought, and moving to the lower limit indicates that it is oversold. When the indicator shrinks to historical lows, this often becomes a harbinger of sharp price movements.
Some traders see this as an opportunity to start strong growth. A market participant nicknamed Crypto Caesar emphasized that similar situations in the past have invariably ended in periods of intense activity, and in Q4 2025, Bitcoin may enter a large-scale rally.
Investor Yannis Andreou recalled that in 2012, 2016, and 2020, similar BB reductions preceded a powerful rise in the rate. At the same time, he noted that the current compression is even more pronounced, which opens up the potential for the “largest movement in the history” of the cryptocurrency. According to him, the result may be twofold: either a breakthrough to new historical highs, or a sharp reversal downwards.
Macroeconomic factor
However, forecasts are not limited to technical signals alone. The focus remains on US macroeconomic indicators and the decisions of the Federal Reserve. A Fed meeting is scheduled for September 17, where the market expects a rate cut.
On September 10, weak data on industrial inflation in the US brought Bitcoin back to $114,000. On September 11, participants are already waiting for the publication of the consumer price index. If the statistics are favorable, the likelihood of easing monetary policy will increase significantly.
According to the CME FedWatch Tool, market players are confident in a rate cut: 92% predict a decrease of 25 basis points and only 8% expect a more aggressive reduction of 50 points.
User Mister Crypto noted that in the event of a radical decision by the Fed, Bitcoin is capable of updating the highs. However, the head of Goldman Sachs, David Solomon, expressed doubts about this scenario. He is almost certain that the decline will be limited to 25 points, given the state of the labor market. At the same time, Solomon does not rule out two more adjustments in the future if the economic situation requires it.
Amid growing interest in rate dynamics, Santiment analysts previously said that Bitcoin could rebound as bearish sentiment in the market deepens.
The crypto market is thus at a crossroads, with a combination of technical indicators and macroeconomic data setting the stage for dramatic changes, and investors are bracing for a period of high turbulence.
