Bollinger Bands Creator Spots Bitcoin W-Shaped Reversal Setup

Technical Setup Draws Attention

Bitcoin has shown signs of forming a W-shaped reversal pattern on its daily chart, according to John Bollinger, the developer of the Bollinger Bands indicator. In recent statements, Bollinger pointed to the structure as one that might challenge the downtrend in place since October 2025.

The pattern involves two swing lows separated by a temporary rebound, with confirmation coming from a move above the intermediate high. Bollinger shared chart analysis showing Bitcoin trading along the lower Bollinger Band, describing the formation as perfectly fractal. He observed smaller w shapes at the lows and a corresponding m at the peak of the middle section, with a similar setup visible on weekly timeframes.

Prior bullish signals had failed to hold, which Bollinger viewed as confirmation of the downtrend's strength up to this point. Despite that, the current configuration stands out for its alignment with the bands.

Bollinger's Ongoing Position

Bollinger has taken a positive stance on Bitcoin in recent months. In early May, he entered a new long position through a Bitcoin-focused investment vehicle. His latest comments continue this line of thinking while acknowledging the challenges the market has faced.

ETF Activity and Price Support

Recent data from U.S. spot Bitcoin exchange-traded funds showed the first net inflows in ten days, totaling around $220 million. This development came as prices held near the $60,000 zone despite earlier outflows.

Trader Daan Crypto Trades commented on the price action around $60,000. He observed that the level had absorbed selling even during periods of outflows, and suggested that continued holding into the following week could indicate meaningful buyer activity in the area.

Broader Market Context

Various on-chain and technical measures have produced readings comparable to those from the 2022 bear market period. Market views differ on the timing of any larger cycle low, with some participants expecting further developments in coming quarters. The combination of the chart pattern and institutional flow data has brought focus to near-term price behavior around current levels.

Bollinger’s analysis centers on the potential for the W formation to complete and shift momentum. Confirmation would require a sustained move above the pattern’s central resistance. Until then, the setup remains subject to ongoing market conditions and price action.

The coming sessions will determine whether the technical structure gains further traction alongside the return of institutional buying interest.