Bitcoin May Be on the Verge of a Bullish Turnaround

According to legendary trader John Bollinger, creator of the widely-used Bollinger Bands technical analysis indicator.

Legendary trader John Bollinger, creator of the widely-used Bollinger Bands technical analysis indicator, believes that Bitcoin may be setting up for a bullish turnaround.

In a recent X post, Bollinger pointed out a classic W-bottom pattern that could be forming on Bitcoin’s weekly chart. This setup, which usually signals a market bottom and potential reversal, is signaled when an asset logs two distinct lows, with the second low being higher than the first.

"Classic Bollinger Band W bottom setting up in $BTCUSD. Still needs confirmation," Bollinger stated.

However, Bollinger also noted that the signal remains unconfirmed.

What Is a W-Bottom?

In technical analysis, a W-bottom forms when an asset logs two distinct lows, with the second low being higher than the first, signaling diminishing selling pressure. When this setup coincides with a touch of the lower Bollinger Band, it often precedes a strong upward price movement.

After tumbling to a multi-month low of $74,415 on April 7, Bitcoin staged a swift recovery. The dip coincided with a major sell-off in U.S. equities triggered by tariff fears, but both stocks and crypto rebounded sharply after the White House paused controversial tariffs for most countries.

As of April 11, Bitcoin is trading at $79,508, climbing from an intraday low of $78,669. Despite the bounce, Bitcoin remains down 26.9% from its all-time high of $109,000 set in January.

Bollinger's analysis comes at a time of intense debate over Bitcoin’s near-term direction. While commodity strategist Mike McGlone, known for his bullish predictions, sees Bitcoin continuing down to $10,000, seeing it continuing down from $70,000, Bollinger's analysis hints at a potential turnaround.

McGlone's prediction is based on macroeconomic headwinds and tightening liquidity, which he believes will drive Bitcoin price toward the lower Fibonacci retracement level, ultimately leading to a "huge market bottom" around the $10,000 mark.

However, technical bulls are hopeful that the W-bottom formation will play out as it has historically, marking the beginning of a new upward trend.

This analysis differs from that of Mike McGlone, who anticipates a continuation of the downward trend due to macroeconomic factors.

Despite the divergence in opinion, both traders' insights are closely followed within the trading community. Their analysis provides valuable perspectives on the complexities of the crypto market as traders navigate the volatile landscape of Bitcoin's price action.