Bitcoin News Today: Bitcoin Bollinger Bands Squeeze Intensifies as Derivatives Open Interest Rises 6.48% to $88.56 Billion

Bitcoin’s Bollinger Bands squeeze on the 4-hour chart has intensified, signaling an impending surge in volatility as the cryptocurrency consolidates within a $117,000–$119,700 range. At $116,111, BTC hovers just below this critical zone, with analysts emphasizing that a confirmed close beyond these levels could trigger the next major price movement. The narrowing bands reflect subdued short-term volatility but underscore a high-probability setup for a directional breakout, historically preceded by sharp price swings during similar squeezes [1].

Derivatives activity underscores growing institutional and retail participation. Open interest in Bitcoin derivatives climbed 6.48% to $88.56 billion, while 24-hour trading volume surged over 30%, per Coinglass data. Options volume spiked 41.63%, though open interest in this segment fell 21.40%, suggesting short-term repositioning among traders. These metrics highlight rising liquidity and positioning but do not yet confirm a definitive trend [2].

Meanwhile, ETF inflows remain robust despite Bitcoin’s recent all-time highs. Strong demand for BTC ETFs aligns with broader accumulation trends, with large wallets increasing holdings. Analysts attribute this to the looming 2025 halving, which historically reduces selling pressure and supports price appreciation. Whale accumulation and reduced macroeconomic risks further reinforce a bullish outlook, though the current consolidation phase requires a decisive catalyst to resolve uncertainty [3].

A breakout above $119,700 or breakdown below $117,000 would likely define the near-term trajectory. While volume remains muted, a surge in activity accompanying a breakout would validate the move. Conversely, a breakdown could reignite bearish sentiment, testing support levels below $115,000. The market’s reaction to the 2025 halving—expected to reduce Bitcoin’s block rewards by 50%—could amplify these dynamics, though the timing and magnitude remain speculative [1].

Source: [1] Bitcoin’s Bollinger Bands Squeeze Nears Breaking Point, Here’s the $117K–$119.7K Range Analysts Are Watching [https://cryptofrontnews.com/bitcoins-bollinger-bands-squeeze-nears-break/](https://cryptofrontnews.com/bitcoins-bollinger-bands-squeeze-nears-break/)

[2] Coinglass [https://e.thsi.cn/img/dabdf607d999ff6b](https://e.thsi.cn/img/dabdf607d999ff6b)

[3] Coinvo(X) [https://e.thsi.cn/img/dabdf607d999ff6b](https://e.thsi.cn/img/dabdf607d999ff6b)