Bollinger Bands Creator Sees Bitcoin Bear Market Nearing End
John Bollinger, who invented Bollinger Bands, says a 'W'-shaped reversal pattern could signal the end of Bitcoin's current downtrend.
If you've spent any time watching crypto charts, you've probably seen Bollinger Bands — those squiggly lines that hug price action and tell you when things are getting volatile. The guy who invented them, John Bollinger, is now turning his own tool on Bitcoin, and his read is cautiously optimistic: the bear market might be wrapping up.
Bollinger is pointing to what traders call a 'W'-shaped reversal pattern in Bitcoin's price action. Think of it like the letter W — prices drop, bounce, dip again to a similar low, then push back up. When that second push higher completes the pattern, it's traditionally seen as a signal that sellers have exhausted themselves and buyers are taking control. Bollinger suggested that if this pattern finishes playing out, it could actually "break" the entire downtrend that's been dragging BTC lower.
Read more XRP Jumps 8% as Investor Loss Data Hints at Better Buy Zone →
The timing matters here. Bitcoin has been grinding through a rough stretch, and any credible signal from a respected technical analyst tends to move sentiment fast in crypto markets. Bollinger isn't some influencer hyping a bag — he's the person who literally wrote the book on one of the most widely used technical indicators in finance. When he talks chart patterns, traders listen.
That said, a W-reversal is only confirmed once the second bounce clears the peak between the two dips — what chartists call the "neckline." Until that level breaks convincingly, the pattern is still a work in progress, and Bitcoin has a well-earned reputation for faking out even the sharpest analysts. So while the setup looks promising according to Bollinger, patience and confirmation are the name of the game.
Continue reading at Cointelegraph
