Analyst: Bitcoin Daily Bollinger Bands Narrow to New Low Since Early 2024, Potentially Signaling ~40% Volatility Ahead

BlockBeats News, April 10th, according to CoinDesk reports, the cryptocurrency market saw overall stability on Friday, with Bitcoin trading slightly volatile around $71,700 and Ethereum at $2,180, continuing its low-volatility trend of the past few months. On the technical indicators, Bitcoin's daily Bollinger Bands have narrowed to the tightest level since early 2024. Cryptocurrency analyst Eric Crown stated that since early February, Bitcoin's price has been holding between $63,000 and $75,000, historically, whenever such a narrow range appears, prices have eventually seen around a 40% swing.

According to the CoinGlass liquidation heat map, if Bitcoin breaks through $75,000, it will trigger upward momentum, forcing short sellers to cover their positions; if it falls below $70,000 in the short term, it will liquidate around $200 million in long positions betting on a breakout.

One of Friday's key catalysts was the U.S. Consumer Price Index (CPI) data. The March inflation rate is expected to be 3.3% year-on-year, driven by surging energy prices. Higher-than-expected inflation data often leads to a stronger dollar, thereby exerting pressure on risk assets like Bitcoin.