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Bollinger Bands is a technical analysis tool that shows if Bitcoin's price is in overbought or oversold zones. John Bollinger, the inventor of Bollinger Bands, stated that Bollinger Bands are showing compression on the Bitcoin chart. This squeeze is often seen as a harbinger of significant price movements, but Bitcoin's future direction could change depending on market sentiment and news as well as technical indicators.
The narrowing of the Bollinger bands indicates reduced volatility, and future news such as CPI data could change this.
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