Bitcoin’s price action is back in the spotlight, reminding everyone that the crypto market loves to keep us guessing. Yesterday, we saw an exciting 10% pump, pushing the price to a high of $93,604. But in typical crypto fashion, the thrill was short-lived. Today, reality bit, with a 5% drop dragging Bitcoin down to a low of $89,100. It’s the same old story – big surges upwards followed by equally hefty pullbacks. While some traders might be feeling blindsided, the truth is, the market was giving us clues.

What were those clues, you ask? Well, take a look at the Bollinger Bands. This trusty indicator, created by the one and only John Bollinger, was already waving a yellow flag.

Even with that upward burst, Bitcoin just couldn’t manage to stay above the middle Bollinger Band on the daily chart. It closed right there, but it wasn’t enough to sustain the momentum. Instead of continuing to climb, the price faltered and started to slide downwards, effectively setting the stage for today’s dip.

And the result? Another painful round of liquidations swept through the market. A massive $1 billion in leveraged positions got wiped out, a stark reminder that chasing big gains in crypto can come with a serious price tag. Now that BTC is trading below that middle band, the market mood has shifted to bearish. It’s not a dramatic panic, more of a subtle shift to a weaker underlying structure.

Is worst ahead?

If things don’t turn around quickly, the lower Bollinger Band – currently around $83,400 – becomes the next level of support to watch. This isn’t about hitting the panic button; it’s about looking at probabilities. Bitcoin’s struggle to hold onto key levels suggests that sellers are still in control right now. There’s definitely buying interest out there, but it’s not strong enough to dominate.

For the time being, the price action remains under pressure, and the market seems to be edging closer to testing even deeper support levels.

Of course, in the world of crypto, unexpected trend reversals are always on the cards. A strong push back above the middle band could quickly change the game. But for now, Bitcoin traders are keeping a very close eye on those Bollinger Bands, waiting to see what signal they flash next.