Bitcoin Shows Potential for W-Bottom Reversal, According to Analyst Bollinger

Technical analyst John Bollinger identified a potential "classic Bollinger Band W bottom" forming in the BTC/USD pair. Key points include:

Support found around $74,000
Price action indicates a double-dip low characteristic of a W-shaped reversal pattern
Bollinger noted confirmation is still needed for this setup

The chart reveals Bitcoin's decline from a mid-January high near $110,000, with current prices near the lower Bollinger Band, at $77,138. The upper band is positioned at $108,837, indicating significant volatility.

Key observations include:

Formation of two troughs: first from approximately $90,000 to mid-$76,000, then a rally back to around $74,500
Repeated dips into horizontal support suggest a potential base for a bullish reversal
A move above $90,000 would validate the W-bottom pattern
Lower trading volumes indicate easing selling pressure
The momentum oscillator supports the bottom thesis but requires a rise above its midpoint for confirmation

Bollinger Bands measure volatility and remain wide, reflecting Bitcoin's price fluctuations over the past two years. A confirmed breakout above $90,000 on strong volume could affirm the W-bottom hypothesis; otherwise, it remains speculative.

Current BTC price is $81,366.