Gate Research: Bollinger Bands performed exceptionally well among various momentum indicators for BTC in 2025.

A recent research report from Gate Research, titled "Application and Backtesting of Momentum Indicators in the Crypto Market," points out that from the end of 2024 to 2025, the BTC market entered a structural phase characterized by high volatility and weak trends, with price movements exhibiting a mixed pattern of "range-bound oscillation + volatility expansion." In this context, traditional trend-following momentum strategies frequently fail during these common phases, while momentum structures centered on volatility expansion demonstrate greater adaptability. Therefore, Bollinger Band breakout momentum is more effective at capturing market movements than MACD and RSI. As the overall market gradually transitions from a "trend-driven" to a "volatility-dominated" trading paradigm, the environmental fit of momentum strategies becomes a core factor determining performance. Gate Research notes that in a market environment characterized by unstable trends and frequent volatility, a single momentum indicator is unlikely to be effective in the long run. A more robust composite momentum framework can be constructed by introducing ADX as a trend filter, combining it with Bollinger Bands to capture volatility expansion, and supplementing it with RSI to identify extreme sentiment ranges.