Bollinger Bands Creator Sees Bitcoin Bear Market Nearing Its End
John Bollinger, inventor of the Bollinger Bands indicator, suggests Bitcoin may be forming a 'W'-shaped reversal that could break its entire downtrend.
John Bollinger, the technical analyst who created one of Wall Street's most widely used volatility indicators, is watching Bitcoin closely — and what he sees is increasingly encouraging for bulls. Bollinger has pointed to a potential 'W'-shaped reversal pattern forming in Bitcoin's price structure, a classic technical formation that signals a transition from sustained selling pressure to a durable recovery.
The 'W' pattern, sometimes called a double bottom, emerges when an asset tests a support level twice in succession without breaking lower, then rallies from that base. Technicians regard the completed pattern as meaningful precisely because it demonstrates that sellers have twice failed to push the market into new lows — a sign that buying conviction is deepening beneath the surface.
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Bollinger's observation carries particular weight given that the indicator bearing his name is designed to measure exactly this kind of volatility compression and expansion cycle. His suggestion that a completed reversal could "break" the prevailing downtrend implies more than a temporary bounce — it signals a potential structural shift in Bitcoin's medium-term trajectory, one that would reframe the recent rebound not as noise but as the opening act of a new directional move.
For investors, the distinction matters enormously. Bear-market rallies are common and routinely punish traders who mistake them for genuine reversals. What Bollinger appears to be arguing is that the technical evidence — at least as the pattern currently stands — is consistent with a more consequential turning point, contingent on the 'W' formation completing with a decisive breakout above its neckline resistance.
Whether that breakout materializes will likely depend on broader macro conditions, institutional demand, and Bitcoin's ability to hold its recent gains under selling pressure. For now, one of technical analysis's most respected voices is signaling cautious optimism. Continue reading at Cointelegraph.
