The upcoming decisive move could determine Bitcoin’s next big trend, with the current squeeze phase likely setting the tone for the remainder of Q4 2025.
The Bitcoin price started the monthly trade on a bullish note by recovering above $111,000. Meanwhile, the ongoing bearish action has dragged the BTC price below $108,000, breaking one of the strong support zones. Besides, Bitcoin’s price action is tightening sharply as volatility hits multi-week lows, signalling a potential explosive move ahead. Traders now have an eye on the $112,000 resistance as the key level for a bullish surge, while failure to hold the $100,000 psychological support could trigger a deeper correction. With momentum indicators flattening, the next move could define Bitcoin’s short-term trend.
Bitcoin’s volatility has compressed to one of its tightest zones in over a year, as seen on the weekly Bollinger Band chart. The Bollinger Bandwidth indicator has dropped near the 15 level, a threshold that historically preceded major price expansions. Previous squeezes (highlighted in yellow) led to significant directional moves in BTC’s trend. With the price consolidating near $108,000 and both upper and lower bands narrowing, Bitcoin appears to be coiling for a decisive breakout in the coming weeks.
The chart shows Bitcoin’s weekly price action with Bollinger Bands and the Bollinger Bandwidth (BBW) indicator. Currently, the BBW has contracted near the 15 level, signalling extremely low volatility — similar to past zones (yellow highlights) that preceded major breakouts. Each previous contraction led to strong upward or downward moves in BTC’s trend. Price is now consolidating around $108,000, suggesting Bitcoin is once again in a volatility squeeze phase, where a sharp directional breakout could occur soon above $112K or below $100K.
Bitcoin’s ongoing volatility squeeze reflects a market in indecision, with traders awaiting a clear catalyst to define direction. Macroeconomic uncertainty, cooling momentum, and fading liquidity ahead of the year-end are contributing to the current tight range. Historically, such compressions have led to strong volatility expansions. A breakout above $112K could reignite bullish sentiment toward new highs, while a breakdown below $100K might confirm a medium-term correction. Either way, the next move is likely to set Bitcoin’s tone for the rest of Q4 2025.
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