Founder of Bollinger Bands: Bitcoin is forming a classic Bollinger Band W-bottom pattern, but it still needs to be confirmed

PANews reported on April 11 that according to Cointelegraph, well-known leading indicators show that Bitcoin is presenting a classic "bottom" feature. On April 10, John Bollinger, founder of the Bollinger Band volatility indicator, posted a post on social platform X that Bitcoin bulls are brewing positive signals. The %b indicator of the Bollinger Band indicates that Bitcoin price is about to rebound, and the latest Bollinger Band data shows that Bitcoin may be building a long-term bottom. Through the analysis of the weekly level, Bollinger specifically pointed out that his original %b indicator is releasing a trend reversal signal. This indicator provides a basis for judging market turnover by calculating the asset closing price relative to the Bollinger band position (based on the standard deviation interval of the 20-period simple moving average). Among them, the W-shaped double-bottom pattern is particularly worthy of attention - when the price falls below the lower track for the first time to form a low point, and the second pullback forms a higher low point, it often indicates an opportunity for reversal. Bollinger confirmed to followers: "Bitcoin is forming a classic Bollinger band W-bottom pattern, but it still needs to be confirmed."

Judging from the weekly and daily Bollinger, there is no trend change yet. Data shows that the daily price of Bitcoin continues to run along the lower rail, and the mid rail SMA forms resistance suppression. Jurrien Timmer, global macro director of Fidelity Investment, found similar technical characteristics when analyzing US stocks, pointing out that the S&P 500 index has fallen from two standard deviations above the trend line to two standard deviations close to two standard deviations below the trend line. Although it is in an oversold area, it has not yet reached historical extremes.