Well-known technical analyst John Bollinger has spotted patterns in the charts of Ether and Solana that may indicate a significant movement ahead, particularly if a similar trend occurs with Bitcoin.
Bollinger has detected “possible ‘W’ bottoms” within Bollinger Bands, a volatility indicator he created, on the charts for Ether (ETH) and Solana (SOL); however, this pattern has not yet appeared on the Bitcoin (BTC) chart, he explained.
“It’s going to be time to start paying attention soon, in my opinion.”
ETH and SOL seem to be establishing double bottoms, while Bitcoin continues to form its base. A ‘W’ bottom in Bollinger Bands signals a bullish reversal, suggesting potential upward price action.
Ether has dipped to $3,700 twice this month and looks to be on the mend, while Solana followed suit with a double dip to $175 in October, followed by a slight recovery.
Bitcoin experienced a significant ‘V’-shaped dip, dropping below $104,000 on Friday but bouncing back over the weekend to trade near the lower band of a range-bound channel that formed in mid-May when it crossed into six figures.
Time to focus
Analyst ‘Satoshi Flipper’ noted that the last occasion Bollinger recommended paying attention was in July 2024. Following that, Bitcoin surged from under $55,000 to more than $100,000 within six months.
“It is indeed time to focus. That’s a genuine Squeeze, and the key element is a two-bar reversal at the lower band,” he stated back then.
Related: Bitcoin indicator’s unprecedented squeeze signals a ‘significant volatility storm’ on the horizon
After months of tight compression, Bitcoin’s Bollinger Bands have expanded this month as volatility surged, influenced by the record leverage unwinding last weekend. Analysts had foreseen this “volatility storm” during the market lull in September.
Monitor the 50-week SMA
BTC has not successfully surpassed the support-turned-resistance level at $108,000 since its Friday plunge.
Nonetheless, analysts remain optimistic that we are not entering a bear market, despite all the fear and anxiety present.
Analyst ‘Sykodelic’ stated that markets are still in an uptrend, referencing the 50-week simple moving average, which has been touched four times since November, as a key technical indicator.
“Every time the price has approached the 1W 50SMA, panic has ensued in the market, with most participants selling off and declaring it’s over. Yet each time, it has rebounded robustly, pushing much higher.”
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