Bollinger Bands Creator Signals Potential Bitcoin Bottom With Classic Pattern

John Bollinger, the creator of the widely followed Bollinger Bands technical indicator, has weighed in on Bitcoin's recent price action, suggesting that the bear market may be nearing its final phase. In a series of social media posts, Bollinger highlighted a distinctive "W-shaped" reversal pattern forming on Bitcoin's daily chart, a formation he believes could signal the end of the prolonged downtrend.

Technical Clues From the Bands

Bollinger Bands measure market volatility by plotting two standard deviations above and below a simple moving average. When the bands contract, it often precedes a sharp move. According to Bollinger, the recent price action shows Bitcoin bouncing off the lower band twice, creating a symmetrical W pattern. "The repeated tests of the lower band and the subsequent recovery are textbook signs of a potential bottom," he noted. However, he cautioned that confirmation requires a decisive break above the middle band, which is currently acting as resistance.

“We are seeing the classic ingredients for a bottom: two legs down, increasing volume on the second leg, and a divergence in momentum indicators. But it's not a done deal until the price closes above the 20-day moving average.” – John Bollinger

Key Levels to Watch

For traders eyeing the next move, Bollinger outlined several critical thresholds:

• Support: The lower Bollinger Band, currently near $52,000, which has held twice.
• Resistance: The middle band (20-day SMA) around $57,500 – a break above this could trigger a run toward $62,000.
• Invalidation: A close below the recent swing low of $49,000 would negate the W-bottom thesis.

Bollinger cautioned that the broader macro environment—including interest rate decisions and regulatory developments—remains a wildcard. While his technical framework points to a possible reversal, he emphasized that no single indicator is foolproof. The coming days will be crucial as Bitcoin attempts to reclaim the middle band and confirm the pattern.