Odaily News Technical analyst Tony Severino said in a recent article that Bitcoin is about to see major price action as its Bollinger Bands are showing one of the tightest formations in history. When the Bollinger Bands are at their tightest level, it is often referred to as a "Bollinger Squeeze," which indicates low volatility and could set the stage for a strong price breakout. Severino noted that Bitcoin's Bollinger Bands, an indicator used to assess its price volatility and determine trend direction, are "one of the three tightest instances in history" on a two-week timeframe. Historically, such contractions have led to large price swings in Bitcoin. A similar situation occurred in April 2016, when the Bollinger Bands first tightened significantly. Following this, Bitcoin prices began to rise sharply in the following months, marking the beginning of a bullish trend. Another key example occurred in July 2023, when the Bollinger Bands once again reached an extremely tight state. Similar to April 2016, it was followed by a significant price increase. It is important to note that while a tight range indicates the possibility of large volatility, it does not predict the direction of the volatility. The result can be a sharp rise or a sharp fall. For example, a similar pattern observed in 2018 led to a sharp drop in the price of Bitcoin. Historical data shows that Bitcoin rose seven out of nine times after the tightening range. (Crypto Briefing)