Bitcoin may be in the process of forming a long-term price floor just below the $80,000 mark, according to insights derived from the behavior of Bollinger Bands. John Bollinger, the creator of this volatility-measuring tool, has identified a possible “W” bottom pattern on Bitcoin’s weekly chart using the %b derivative of his indicator — a signal historically associated with market reversals.
The suggested “W” formation occurs when an asset initially dips below a key support level but then forms a higher low, signaling a potential reversal in trend. While this structure is beginning to emerge, experts note that a clear confirmation is still needed before declaring a definitive trend change.
Short-Term Trends Remain Bearish
On smaller timeframes, Bitcoin remains under pressure:
- Prices linger near the lower Bollinger Band
- The 20-period simple moving average is acting as resistance
These technical metrics suggest continued weakness in the immediate term, reflecting broader concerns seen across high-risk assets.
Broader Market Influences
Traditional equity markets are also exhibiting oversold conditions, with analysts paying close attention to the Nasdaq. Bitcoin often correlates with tech-heavy indices like the Nasdaq, making it a key factor in forecasting crypto recovery scenarios.
Key Support Levels and Market Sentiment
Support around the $70,000 level is gaining importance, both for its psychological impact and its technical relevance. However, some analysts argue that a sustained recovery in Bitcoin may depend heavily on the stabilization of broader financial markets.
At the time of reporting, Bitcoin is trading below its previous all-time highs, and investor sentiment remains cautious, dampened by global economic uncertainty.
For more details, read the full article on Cointelegraph.
