Bitcoin Volatility Squeeze: Is BTC Gearing Up for a Breakout Above $112K or a Drop Below $100K?

Bitcoinโs volatility is at a multi-month low, a zone that has historically preceded major breakout moves
The upcoming decisive move could determine Bitcoinโs 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, Bitcoinโs 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 Bitcoinโs short-term trend.
Bitcoin Gearing Up for the Next Move
Bitcoinโs 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 BTCโs 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 Bitcoinโs weekly price action with Bollinger Bands and the Bollinger Bandwidth (BBW) indicator. Currently, the BBW has contracted near the 15 level, signalling extremely low volatilityโsimilar to past zones (yellow highlights) that preceded major breakouts. Each previous contraction led to strong upward or downward moves in BTCโs 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.
Conclusion
Bitcoinโs 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 Bitcoinโs tone for the rest of Q4 2025.
FAQs
Bitcoin is down as traders take profits and uncertainty grows around macro trends, liquidity, and key support near $108K.
As per Coinpediaโs BTC price prediction, the Bitcoin price could peak at $168k this year if the bullish sentiment sustains.
With increased adoption, the price of Bitcoin could reach a height of $901,383.47 in 2030.
As per our latest BTC price analysis, Bitcoin could reach a maximum price of $13,532,059.98
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