Bitcoin Bollinger Bands Still Compressed As Price Holds Above $107K

Bitcoin’s monthly price remains above $107000 but Bollinger Bands have not yet expanded this cycle.

The RSI currently reads 70 and it has not broken above the long-term resistance from previous peaks.

Analysts expect that a breakout may follow if RSI crosses the trendline and volatility begins to rise.

Bitcoin’s monthly Bollinger Bands have not yet expanded despite the cryptocurrency trading above $107,600 as of May 21, 2025. Analyst @cantoneseow noted that the Relative Strength Index (RSI) trendline remains untested, indicating further potential in Bitcoin’s ongoing market structure. Historical chart data suggests Bitcoin expansions follow band widening and RSI resistance tapping, which have not yet occurred this cycle.

Source: X

The posted TradingView chart spans 2010 to 2026 and shows three major Bollinger Band expansions. Each expansion phase coincided with dramatic price growth and RSI breakouts. However, Bitcoin’s RSI for May 2025 is holding near 70.08, trending upward but yet to intersect with the declining resistance line that capped previous bull runs.

Currently, the Bollinger Bands show compression, a sign of consolidating volatility. Analysts interpret band expansion as a reliable indicator of strong directional moves. With the current band structure similar to 2016 and 2020, traders are monitoring closely for another volatility breakout.

Band Compression Suggests Volatility Still Dormant

Bollinger Bands are technical tools that track price volatility through standard deviations around a moving average. When bands tighten, they signal reduced volatility. Conversely, an expansion indicates growing price range and potential trend acceleration.

Bitcoin’s price is currently pressing against the upper band near $107,600 but has not caused the bands to widen significantly. This pattern has occurred during past consolidation phases before large directional price movements. The chart also labels two previous expansion events, both of which led to rapid upward trends.

Market participants often interpret these compressions as signs of building momentum. When price finally breaks through resistance and expands the bands, strong rallies can follow. Without current expansion, many believe Bitcoin may still be in the build-up stage of this cycle.

RSI Trendline Yet to Confirm Momentum Shift

The RSI indicator provides insight into whether an asset is overbought or oversold by measuring momentum over time. Bitcoin’s monthly RSI now reads 70.08, near the critical overbought threshold. Despite the strong reading, the RSI has not crossed its long-term descending trendline.

On the chart, this RSI trendline dates back to previous cycle peaks and has historically been a ceiling for upward momentum. Past cycles in 2013, 2017, and 2021 show Bitcoin’s RSI testing or exceeding this line during major price expansions. Its current position below this line suggests potential for further growth if broken.

Analysts argue that until the RSI trendline is tapped, full cycle acceleration has not occurred. The RSI level and band compression together form a dual signal. With price now over $107,000, traders await confirmation from these indicators to validate bullish continuation

Could a Fresh Bollinger Expansion Spark a New Rally?

With the bands compressed and the RSI approaching its historical resistance, the question now is: will expansion trigger the next surge? The chart signals that Bitcoin is nearing a technical breakout zone, but no full confirmation has appeared.

According to the tweet, this pattern remains consistent with Bitcoin and NVDA cycles alone. If past cycles are any guide, a new expansion phase could emerge soon. Until then, traders are watching closely for signs of increased volatility or RSI breakout.