John Bollinger Spots Double-Bottom 'W' Pattern on Bitcoin Charts

John Bollinger, creator of the widely used Bollinger Bands volatility indicator, identified a double-bottom 'W' formation on Bitcoin's price chart on Thursday, suggesting the pattern could mark the end of a prolonged multi-week downtrend. BTC was trading at $61,556 at the time of publication, posting only a marginal recovery.

The 'W' Pattern Explained

The formation Bollinger highlighted emerged after Bitcoin suffered a series of sharp corrections following a failed rally to $82,000 in May. The sustained price decline pushed BTC repeatedly toward the lower boundaries of the Bollinger Bands, producing what Bollinger describes as a three-stage bottoming formation on the daily chart.

Bollinger characterized the setup as 'perfectly fractal,' noting that it contains micro-patterns nested within the broader macro structure — a technical quality he considers significant for the reliability of the signal.

Higher Time Frame Implications

Beyond the daily chart, Bollinger urged traders to examine the weekly time frame for additional context. According to his analysis, the entire multi-week daily correction represents only the second leg of a far larger fractal 'W' pattern forming on higher time frames.

The key level to watch, per Bollinger's assessment, is the $65,000 apex — the central pivot of the daily pattern. A confirmed breakout above that level would, in his view, carry the potential to terminate the multi-month downtrend that has repeatedly invalidated previous bullish continuation signals.

Headwinds Remain

Despite the technical setup, Bitcoin continues to face significant fundamental pressures:

• Persistent outflows from Bitcoin exchange-traded funds
• Renewed fears surrounding potential interest rate hikes
• A downtrend that has consistently invalidated earlier bullish patterns

Bollinger acknowledged that multiple prior bullish signals had already failed under the weight of the current trend, framing the 'W' formation as the most compelling candidate yet for a trend reversal — though without issuing a definitive forecast.

Market Context

Bitcoin has spent several weeks in a sustained decline, with bulls unable to defend breakout attempts across various technical setups. The $61,556 price level reflects a modest bounce but leaves BTC well below the $65,000 threshold that Bollinger identifies as the critical confirmation point for the bullish scenario to materialize.