Prominent technical analyst John Bollinger has detected patterns in Ether and Solana charts that may indicate a significant movement ahead, particularly if a similar scenario unfolds with Bitcoin.
Bollinger pointed out “potential ‘W’ bottoms” in his Bollinger Bands, a volatility indicator he developed, on the charts for Ether (ETH) and Solana (SOL), though this pattern has yet to appear on the Bitcoin (BTC) chart, he remarked.
“Gonna be time to pay attention soon, I think.”
ETH and SOL seem to be forming double bottoms while Bitcoin is still establishing its base. A ‘W’ bottom in Bollinger Bands serves as a bullish reversal signal, suggesting possible upward price movement.
Ether has dipped to $3,700 twice this month but appears to be bouncing back, while Solana mirrored this trend, experiencing a double dip to $175 in October, followed by a slight recovery.
Bitcoin underwent a significant ‘V’ shaped drop, falling below $104,000 on Friday before rebounding over the weekend to trade at the lower band of a range-bound channel that formed in mid-May when it crossed into six figures.
Time to pay attention
Analyst ‘Satoshi Flipper’ noted that the last time Bollinger suggested paying attention was in July 2024. Bitcoin surged from below $55,000 to over $100,000 in the subsequent six months.
“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 at that time.
Related: Bitcoin indicator’s record squeeze signals ‘significant volatility storm’ ahead
After months of tight compression, Bitcoin Bollinger Bands have expanded this month as volatility heightened following the record leverage flush last weekend. Analysts had anticipated this “volatility storm” during the market stagnation in September.
Watch the 50-week SMA
BTC has struggled to rise above the support-turned-resistance level at $108,000 since its Friday plunge.
Yet, analysts remain optimistic that we are not in a bear market yet, despite widespread fear and panic.
Analyst ‘Sykodelic’ mentioned that markets are still in an uptrend, referencing the 50-week simple moving average, which has been tested 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. Yet every time it has rebounded powerfully and moved much higher.”
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