While investors are eagerly waiting for the downtrend in Bitcoin to end and the rise to begin, John Bollinger, the creator of Bollinger Bands, stated that there is a bottom formation in BTC.
At this point, John Bollinger said that Bitcoin Bollinger bands are trying to form a double bottom formation, but this has not been confirmed yet.
Following the sharp declines, John Bollinger said that Bitcoin may be forming a classic “W” bottom pattern based on the %b indicator.
The %b indicator measures the closing price of an asset based on its position within the Bollinger Bands. This means that Bitcoin has formed a bottom according to the Bollinger Bands.
“According to Bollinger Bands, a classic W bottom is forming in the Bitcoin/USD trading pair. However, this still needs confirmation. Because Bollinger Bands on both the weekly and daily time frames show that a trend reversal has not yet occurred.”
While confirmation is still needed, it could signal a potential price recovery, according to Bollinger. “W” bottoms occur when prices make a higher low and touch the lower band.
Experienced analyst Timothy Peterson also shared his expectations for Bitcoin, predicting that Bitcoin could only rise after stocks find their bottom.
*This is not investment advice.