Bitcoin price strength could "break" the entire downtrend if the reversal pattern completed, John Bollinger suggested in light of the BTC rebound.
Bitcoin (BTC) is completing a “perfectly fractal” reversal pattern that a well-known analyst hopes could end the bear market.
In X posts on Friday, John Bollinger, creator of the Bollinger Bands volatility indicator, eyed a “W”-shaped double bottom on BTC/USD.
“$BTC has seen a series of bullish patterns broken, evidence of the power of the downtrend,” he commented.
“W”-shaped reversals involve two swing lows with a rejected rebound in between, with price ultimately breaking through that rejection level to form a new uptrend.
Bollinger uploaded a chart showing how neatly the current setup aligns with the lower band of the Bollinger Bands indicator on daily time frames.
“Note that it is perfectly fractal. The are small 'w's at the nadirs and a small 'm' at the apex,” he added, also pointing to a “W” on the weekly chart.
BTC/USD one-day chart with Bollinger Bands. Source: John Bollinger/X
Bollinger has been bullish on BTC for some time. In early May, he revealed a new long position via his Bitcoin investment vehicle.
As Cointelegraph reported, an increasing number of price indicators are flashing signals not seen since the last bear market in 2022. Despite this, market participants broadly believe that the next macro bottom is still to come and is due in Q3 or later.
Continuing, analyst Axel Adler Jr., a contributor to onchain analytics platform CryptoQuant, stressed the significance of re-emerging institutional buyer interest.
Related: Bitcoin price tags $62.3K nine-day high after global stocks hit historic record
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