- Potential bullish reversal patterns called “W” bottoms appeared on Ether and Solana charts but not yet on Bitcoin.
- Ether dropped to about $3,700 twice recently and is showing signs of recovery, while Solana dipped to around $175 twice in October.
- Bitcoin experienced a sharp “V” shaped dip below $104,000 before bouncing back to the lower band of a range-bound channel formed after breaking six figures.
- Bitcoin’s Bollinger Bands indicate increased volatility following a tight compression period and a recent leverage sell-off.
- The 50-week simple moving average (SMA) remains a key support level for Bitcoin, with previous bounces from this level leading to strong rebounds.
Technical analyst John Bollinger identified potential “W” bottom patterns in his volatility indicator known as Bollinger Bands on Ether (ETH) and Solana (SOL) charts. These patterns suggest a possible upward price move. However, the pattern has not yet formed on Bitcoin’s (BTC) chart. Bollinger noted, “Gonna be time to pay attention soon, I think.”
Ether saw two drops to approximately $3,700 this month but is now starting to recover. Solana showed a similar double dip to about $175 in October, followed by a small bounce. Meanwhile, Bitcoin made a sharp “V” shaped decline below $104,000 last Friday, before recovering over the weekend to trade near the lower band of a channel that developed after breaking above $100,000 in mid-May.
Bitcoin’s Bollinger Bands have recently widened, signaling increased volatility after months of tight compression. This change came amid a significant sell-off of leveraged positions last weekend. Earlier predictions had warned of such a “volatility storm” during September’s quiet market phase.
The 50-week simple moving average (SMA) continues to act as an important support level for Bitcoin. Despite recent price drops, this moving average has been tested four times since November, often sparking market fear and panic selling. Yet, each time Bitcoin bounced back strongly after reaching this level, maintaining the market’s overall upward trend. One analyst remarked, “Every single time the price has come down to tag the 1W 50SMA, there has been mass fear in the market, with the majority panic selling and everyone saying it is over. And every time it has rebounded with strength and pushed much higher.”
Readers can follow updates on Bitcoin’s Bollinger Bands on TradingView and related market observations on X.
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