Bollinger Bands Indicator Suggests Bitcoin May Be Establishing Key Market Bottom

According to Cointelegraph, a widely utilized technical indicator could be signaling the emergence of a key market bottom for Bitcoin within the $70,000 to $80,000 range. John Bollinger, the originator of the renowned Bollinger Bands, has identified a potential “W” double-bottom formation on Bitcoin’s weekly chart—an early warning sign that often signals a forthcoming bullish reversal.

The Bollinger Bands %b indicator is central to this analysis. It gauges Bitcoin’s closing price relative to its position within the upper and lower bands, which are derived using standard deviations from a 20-period moving average. A classic reversal pattern tends to form when:

The %b value falls below zero.
It then recovers, forming a higher low that resembles a “W” shape.

Currently, technical charts suggest that Bitcoin remains near the lower Bollinger Band on the daily timeframe. The middle band continues to act as a resistance level, which indicates that a confirmed trend reversal has yet to materialize.

Market sentiment is also being shaped by activity in traditional equities. Bitcoin’s price trajectory lately has echoed that of the Nasdaq. Analysts expect that stocks could experience a 10% dip before recovering—a move that may foreshadow a broader turnaround in risk assets, including crypto.

Bitcoin is hovering around the psychologically significant $70,000 level, considered by many to be both a technical and emotional support zone. However, while multiple metrics hint at a potential bottom, traders are advised to seek additional confirmation before concluding a definitive trend change.

In summary:

A possible “W” bottom may be forming near $70k–$80k.
The Bollinger Bands %b indicator supports this potential signal.
No full confirmation of a trend reversal has been observed yet.
Market analysts are closely monitoring both crypto and equity markets for further cues.

Investors should apply caution, as crypto markets remain subject to extreme volatility and rely heavily on external macroeconomic signals.

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