Bitcoin's Bollinger Bands, a technical analysis indicator, have tightened to the narrowest point since early January, indicating a potential volatility explosion. Traders are preparing for a big move and usually trade in the direction in which prices breach the band.
The tightening of the bands has caught the attention of crypto traders and analysts ahead of the US inflation report for June, which is likely to influence Federal Reserve interest rate expectations and inject volatility into markets.
However, tighter bands do not always imply immediate and notable volatility explosion/directional clarity in the market.
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