Famous technical analyst John Bollinger has spotted patterns in Ether and Solana charts that may indicate a significant movement is on the horizon, particularly if Bitcoin follows suit.
Bollinger noted “potential ‘W’ bottoms” in Bollinger Bands, the volatility indicator he developed, on Ether (ETH) and Solana (SOL) charts, though this pattern has yet to manifest on the Bitcoin (BTC) chart, he explained.
“Gonna be time to pay attention soon, I think.”
ETH and SOL seem to be creating double bottoms while Bitcoin is still laying its foundation. A ‘W’ bottom in Bollinger Bands serves as a bullish reversal signal, hinting at possible upward price action.
Ether has dipped to $3,700 twice this month and seems to be on the mend, while Solana followed suit with a drop to $175 in October, before a slight recovery.
Bitcoin experienced a sharp ‘V’ shaped decline, dropping below $104,000 on Friday, then rebounding over the weekend to trade at the lower limit of a range-bound channel established in mid-May when it entered six figures.
Time to pay attention
Analyst ‘Satoshi Flipper’ pointed out that the last occasion Bollinger suggested paying attention was in July 2024. During the following six months, Bitcoin surged from below $55,000 to over $100,000.
“It is indeed time to pay attention. That’s a real Squeeze and the controlling feature is a two-bar reversal at the lower band,” he stated back then.
Related: Bitcoin indicator’s record squeeze signals ‘significant volatility storm’ ahead
Following several months of tight compression, Bitcoin Bollinger Bands have expanded this month as volatility surged with the record leverage flush last weekend. Analysts had anticipated this “volatility storm” during the market lull in September.
Watch the 50-week SMA
BTC has struggled to bounce back above the support-turned-resistance level at $108,000 since its dip on Friday.
However, analysts maintain optimism that we are not in a bear market yet, despite prevailing fear and panic.
Analyst ‘Sykodelic’ noted that markets remain in an uptrend, using the 50-week simple moving average, which has been hit four times since November, as a technical indicator.
“Every single time the price has come down to tag the 1W 50SMA, there has been mass fear in the market, with the majority panic selling and everyone saying it is over. And every time it has rebounded with strength and pushed much higher.”
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