Bitcoin's weekly Bollinger Bands have compressed to unprecedented levels, suggesting an imminent expansion in volatility and potential significant price movement. Historically, such compression has preceded sharp price swings, as seen in July 2025 when a bullish breakout followed a similar pattern. Analysts emphasize that traders should be prepared for rapid price tests of the outer bands and consider employing risk-managed strategies. While some researchers attribute the declining volatility to Bitcoin's increasing market cap, the consensus is that a substantial price move is likely once the current squeeze resolves.