Famend technical analyst John Bollinger has noticed potential ‘W’ backside patterns—usually a bullish reversal sign—rising on Ether and Solana charts utilizing his personal Bollinger Bands indicator.
Nonetheless, he famous that this sample has not but appeared on the Bitcoin chart.
Potential for main strikes
Bollinger commented on social media:
“Gonna be time to concentrate quickly, I believe.”
A ‘W’ backside in Bollinger Bands typically indicators the tip of a downtrend and potential for upward worth motion.
Ether just lately dipped to $3,700 twice within the month earlier than rebounding, whereas Solana mirrored this double backside sample with a drop to $175 in October, adopted by a partial restoration.
In distinction, Bitcoin skilled a pointy ‘V’ formed dip beneath $104,000 on Friday, then recovered to the decrease band of a variety established since mid-Could.
Historic context for bitcoin
Analyst ‘Satoshi Flipper’ recalled that the final time Bollinger urged merchants to concentrate was in July 2024, previous a transfer from beneath $55,000 to over $100,000 for Bitcoin inside six months.
This historic context raises anticipation for an additional vital transfer.
Current months have seen Bitcoin’s Bollinger Bands tighten after which widen as volatility elevated, significantly following final weekend’s leverage flush.
Analysts beforehand predicted this “volatility storm” throughout September’s market lull.
50-week SMA as a key indicator
Regardless of failing to interrupt above the $108,000 resistance after its Friday drop, analysts argue that Bitcoin stays in an uptrend.
‘Sykodelic’ highlighted the significance of the 50-week easy transferring common (SMA), stating:
“Each single time the value has come all the way down to tag the 1W 50SMA, there was mass worry available in the market, with the bulk panic promoting and everybody saying it’s over. And each time it has rebounded with power and pushed a lot larger.”
Bitcoin sentiment stays cautious, with worry and greed index reflecting elevated uncertainty, however historic information factors to the opportunity of sharp worth rebounds after durations of market worry.