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

April 10 (CoinDesk) — The crypto market held steady overall on Friday, with Bitcoin seeing minor volatility around $71,700 and Ethereum trading at $2,180, extending the low-volatility trend of the past few months. On technical charts, Bitcoin’s daily Bollinger Bands have contracted to their narrowest level since early 2024. Crypto analyst Eric Crown noted that Bitcoin has traded in a $63,000-$75,000 range since early February; historically, such a tight range has preceded roughly 40% price swings. Per CoinGlass’s liquidation heatmap, a breakout above $75,000 would spark upward momentum and force short sellers to cover their positions. A short-term drop below $70,000, meanwhile, would wipe out roughly $200 million in long positions betting on a breakout. A key catalyst Friday was U.S. Consumer Price Index (CPI) data. March’s annual inflation rate is expected to hit 3.3%, pushed higher by rising energy costs. Inflation readings above expectations often strengthen the U.S. dollar, putting pressure on risk assets like Bitcoin.