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Recently, Bitcoin has been oscillating between $89,000 and $93,000, while Ethereum is stuck in the $3,000 to $3,150 range. It may seem insignificant, but this is precisely the calm before a major move. Looking back at previous years' data, similar narrow-range patterns tend to break out with an average gain of 12%, which is quite substantial.
First, let's talk about the time cycle. Since the beginning of 2025, the crypto market has experienced 11 instances of volatility below 20%. What was the result? In 7 of those cases, a direction was chosen between the 6th and 8th trading days. More importantly, the trend continuation rate after a breakout is 73%, with an average duration of 9 trading days. Currently, the consolidation has entered its 5th day, so the next 48 hours are a critical window to watch.
Next, regarding volatility compression, this is more intuitive. The Bollinger Bands' bandwidth has now fallen to its lowest level since 2025—BTC's bandwidth ratio is only 0.8%, similar to a spring being compressed to its limit. What does this mean? A breakout must be accompanied by a surge in trading volume, at least twice the daily average. If volume spikes and breaks above the upper band, shorts should quickly cut losses; if volume breaks below the lower band, it can be an opportunity to add to short positions.
The most interesting aspect is the movement of institutional funds. Recently, the market has shown some contradictions—on one hand, Bitcoin ETFs are investing money, but the rate has dropped from an average of $450 million per day to $120 million, indicating decreasing selling pressure; on the other hand, whale addresses holding over 10,000 BTC have increased their holdings by 270,000 BTC this week, and there are 900,000 ETH waiting to be staked, far exceeding the 80,000 ETH that investors want to withdraw. Taken together, these signals suggest that the bulls' intentions are still quite clear.