Bollinger Bands Creator Sees Bitcoin Bear Market Nearing Its End
John Bollinger, creator of the Bollinger Bands indicator, says a 'W'-shaped reversal pattern in Bitcoin could signal the end of its downtrend.
John Bollinger, the technical analyst behind one of the most widely used volatility indicators in financial markets, is now pointing to signs that Bitcoin's prolonged bear market may be approaching a turning point. His remarks come as Bitcoin staged a notable rebound, prompting Bollinger to examine whether the price action could constitute a meaningful structural shift rather than a temporary bounce.
At the center of Bollinger's analysis is the so-called 'W'-shaped reversal pattern — a double-bottom formation that technical traders interpret as a signal of exhausted selling pressure. When price action carves out two successive lows at roughly the same level and then rallies above the intervening peak, it historically suggests that bears have lost their grip and a sustained move higher becomes more probable. Bollinger argued that if this pattern were to fully complete, it could effectively "break" the entire downtrend that has defined Bitcoin's recent price history.
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The significance of Bollinger's commentary extends beyond the pattern itself. As the creator of Bollinger Bands — a tool built on standard deviation envelopes that traders use globally to gauge volatility and momentum — his readings carry institutional credibility. When he characterizes a setup as potentially trend-ending, it tends to sharpen attention across both retail and professional trading communities. His framing suggests he views the current environment not merely as a relief rally but as something with more durable technical foundations.
That said, the pattern remains contingent. A 'W' reversal only carries analytical weight once it has fully confirmed, meaning price must decisively clear the resistance level formed between the two lows. Until that confirmation arrives, the setup remains a thesis rather than a verdict. Bitcoin's historically high volatility means that false breakouts and premature reversal calls are occupational hazards even for seasoned technicians.
For investors watching Bitcoin's trajectory, Bollinger's observation adds a credible technical voice to the ongoing debate over whether the worst of the cycle has passed. Continue reading at Cointelegraph.
