Bitcoin Shows Signs of Potential Bottom Formation, Analysts Suggest

According to PANews, recent analysis indicates that Bitcoin may be exhibiting classic bottoming characteristics. On April 10, John Bollinger, the creator of the Bollinger Bands volatility indicator, shared insights on social media platform X, suggesting that Bitcoin bulls are signaling positive momentum. The Bollinger %b indicator hints at a potential price rebound, with the latest data suggesting Bitcoin might be forming a long-term bottom. Bollinger emphasized that his unique %b indicator is signaling a trend reversal through weekly analysis. This indicator assesses an asset's closing price relative to its position within the Bollinger Bands, which are based on a 20-period simple moving average and standard deviation. A notable pattern to watch is the W-shaped double bottom, which often indicates a reversal opportunity when the price initially drops below the lower band to form a low, followed by a higher low on a subsequent pullback. Bollinger confirmed to his followers that "Bitcoin is forming a classic Bollinger W bottom pattern, but confirmation is still needed." Despite these observations, both weekly and daily Bollinger Bands show no definitive trend change yet. Data reveals that Bitcoin's daily price continues to hover along the lower band, with the middle SMA acting as resistance. Jurrien Timmer, Director of Global Macro at Fidelity Investments, noted similar technical patterns in the U.S. stock market, highlighting that the S&P 500 index has fallen from two standard deviations above the trend line to nearly two standard deviations below it. Although the index is in an oversold region, it has not yet reached historical extremes.