Bitcoin Price Squeeze Triggers Historical Parallels Ahead of Fed Decision

The Bitcoin price has been stuck in a narrow range around $63,700, and some traders are drawing parallels to the past.

The Bollinger Band Width indicator on the daily chart has contracted to its lowest level since October 2023, creating an extreme technical threshold known as a 'squeeze'.

This condition of extremely low volatility has historically been followed by a powerful price explosion, as seen in the fall of 2023 when Bitcoin gained over 330% to reach a peak above $130,000 by mid-2025.

The current situation is similar to that three-year-old event, with some market participants expecting a repeat of the bullish fractal triggered by a Fed pause.