
Renowned technical analyst John Bollinger has spotted potential ‘W’ bottom patterns—typically a bullish reversal signal—emerging on Ether and Solana charts using his own Bollinger Bands indicator.
However, he noted that this pattern has not yet appeared on the Bitcoin chart.
Potential for major moves
Bollinger commented on social media:
“Gonna be time to pay attention soon, I think.”
A ‘W’ bottom in Bollinger Bands often signals the end of a downtrend and potential for upward price movement.
Ether recently dipped to $3,700 twice in the month before rebounding, while Solana mirrored this double bottom pattern with a drop to $175 in October, followed by a partial recovery.
In contrast, Bitcoin experienced a sharp ‘V’ shaped dip below $104,000 on Friday, then recovered to the lower band of a range established since mid-May.
Historical context for bitcoin
Analyst ‘Satoshi Flipper’ recalled that the last time Bollinger urged traders to pay attention was in July 2024, preceding a move from below $55,000 to over $100,000 for Bitcoin within six months.
This historical context raises anticipation for another significant move.
Recent months have seen Bitcoin’s Bollinger Bands tighten and then widen as volatility increased, particularly following last weekend’s leverage flush.
Analysts previously predicted this “volatility storm” during September’s market lull.
50-week SMA as a key indicator
Despite failing to break above the $108,000 resistance after its Friday drop, analysts argue that Bitcoin remains in an uptrend.
‘Sykodelic’ highlighted the importance of the 50-week simple moving average (SMA), stating:
“Every single time the price has come down to tag the 1W 50SMA, there has been mass fear in the market, with the majority panic selling and everyone saying it is over. And every time it has rebounded with strength and pushed much higher.”
Bitcoin sentiment remains cautious, with fear and greed index reflecting elevated uncertainty, but historical data points to the possibility of sharp price rebounds after periods of market fear.