Prominent technical analyst John Bollinger has recognized patterns in Ether and Solana charts that might indicate a significant movement ahead, especially if Bitcoin follows suit.
Bollinger has spotted “potential ‘W’ bottoms” in Bollinger Bands—his own volatility indicator—on the charts for Ether (ETH) and Solana (SOL), though this pattern has not yet appeared on the Bitcoin (BTC) chart, he stated.
“It’s almost time to pay attention, I think.”
ETH and SOL seem to be forming double bottoms while Bitcoin is still establishing its base. A ‘W’ bottom in Bollinger Bands signals a bullish reversal that suggests possible upward price movement.
Ether has dropped to $3,700 twice this month and looks to be recovering, while Solana mirrored this with a double dip to $175 in October, followed by a slight recovery.
Bitcoin experienced a significant ‘V’ shaped drop, slipping below $104,000 on Friday, but rebounded over the weekend to trade at the lower band of a range-bound channel formed in mid-May when it breached the six-figure mark.
Time to pay attention
Analyst ‘Satoshi Flipper’ noted that the last instance when Bollinger advised to pay close attention was in July 2024, which saw Bitcoin surge from below $55,000 to over $100,000 in the following six months.
“Indeed, it is time to pay attention. That’s a definite Squeeze, with a two-bar reversal at the lower band being the key element,” he remarked back then.
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 surged following last weekend’s record leverage flush. Analysts had anticipated this “volatility storm” during the market lull in September.
Watch the 50-week SMA
BTC has struggled to surpass the support-turned-resistance level at $108,000 since its Friday decline.
Nevertheless, analysts remain optimistic that we are not in a bear market yet, despite the prevailing fear and panic.
Analyst ‘Sykodelic’ mentioned that markets are still in an upward trend, utilizing the 50-week simple moving average, tagged four times since November, as a technical indicator.
“Each time the price has touched the 1W 50SMA, there has been widespread fear in the market, leading to panic selling and claims that it’s over. Yet, it has rebounded strongly every time and surged much higher.”
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