A technical indicator known as Bitcoin’s Bollinger Bands has recently exhibited its tightest compression ever recorded as market volatility subsides, all the while the asset stays within a bounded range despite earlier surges.

Bitcoin’s Stagnation

Currently, the cryptocurrency has not managed to forcefully breach above the upper boundary, despite its recent accomplishment of hitting an all-time high near $126,000 earlier this week.

According to previous patterns of local consolidation, Tony Severino remarked, “it could take as long as a hundred days to get a valid breakout (or breakdown, if BTC dumps instead).” Translation: It may require up to one hundred days for a definitive price movement to manifest, whether upwards or downwards.

Bollinger Bands are a widely-used tool in technical analysis to assess market volatility and pinpoint potential overbought or oversold conditions of assets.

Potential for Parabolic Move

Severino further noted that an expansion from such a compressed state could introduce ‘head fakes’, which may have occurred with the recent price movements.

He warned, “We also might see another head fake down from here before eventually taking off higher,” adding:

“This has the potential to send Bitcoin parabolic, or terminate the three-year mature bull rally.”

Mark Moss, Chief Strategist at Satsuma Technology, mentioned that even if Bitcoin does ascend to new heights, it does not seem to be approaching the peaks typically seen within the cycle, regardless of the promising external factors at play.

Continuation of ‘Uptober’

Despite a recent 2.5% drop to approximately $121,000, Bitcoin’s ‘Uptober’ remains optimistic, with a 7% rise observed so far this month. Historically, BTC has seen gains in 10 of the last 12 Octobers and 8 of the previous 12 fourth quarters, as revealed by Coinglass.

Meanwhile, analyst ‘Sykodelic’ has joined others in declaring that the traditional four-year cycle has ceased to exist, suggesting, “the reality is that Bitcoin has a considerable area to expand until we reach the end of its price cycle.”

Additionally, Plan B, the creator of the Stock-to-Flow model, commented, “I would not be surprised if Bitcoin will NOT drop below $100,000 again, as we see that level transform from resistance into support.”

The close for September marked the fifth consecutive month that Bitcoin maintained a price within six figures.