Bollinger Bands Signal Big Moves for ETH, SOL, BTC

Renowned technical analyst John Bollinger has identified patterns in Ether and Solana charts that could suggest a big move ahead, especially if a similar pattern emerges with Bitcoin.

John Bollinger has identified “potential ‘W’ bottoms” in Bollinger Bands, a volatility indicator that he invented, on Ether (ETH) and Solana (SOL) charts. However, he noted that the pattern has yet to form on the Bitcoin (BTC) chart. He said.
💡 It’s always wise to monitor how different altcoins react to Bitcoin’s price action.

“Gonna be time to pay attention soon, I think.”

ETH and SOL appear to be setting up double bottoms, while Bitcoin is still in the process of forming its base. A ‘W’ bottom formation within the Bollinger Bands is widely recognized as a bullish reversal signal, indicating potential upward price movement.

Ether has experienced two notable drops to $3,700 this month and appears to be in a recovery phase. Solana mirrored this movement with a double dip to $175 in October, followed by a minor recovery.
✅ Observing these double bottom formations can offer insights into potential market turning points.

Bitcoin recently underwent a significant ‘V’ shaped dip, falling below $104,000 on Friday before recovering over the weekend. It is currently trading at the lower band of a range-bound channel that formed in mid-May when it initially broke into six figures.
📊 Understanding channel formations is crucial for identifying support and resistance levels.

Time to Pay Attention

Analyst ‘Satoshi Flipper’ observed that the last time Bollinger advised paying attention was in July 2024. In the six months that followed, Bitcoin experienced a significant pump, rising from below $55,000 to over $100,000.
⚡ Past performance is not indicative of future results, but historical patterns can provide valuable context.

“It is indeed time to pay attention. That’s a real Squeeze and the controlling feature is a two-bar reversal at the lower band,” he said at the time.
📌 Bollinger Bands’ squeeze often precedes periods of increased volatility.

Following months of tight compression, Bitcoin Bollinger Bands have widened this month as volatility increased with the recent leverage flush last weekend. Analysts had predicted this “volatility storm” during the market lull observed in September.
⚡ Monitor Bollinger Band width as an indicator of potential upcoming price volatility.

Watch the 50-Week SMA

BTC has struggled to break above the support-turned-resistance level at $108,000 since its decline on Friday.
📍 The $108,000 level appears to be a significant area of contention for Bitcoin’s price.

However, analysts remain confident that the market is not yet in a bear market, despite the widespread fear and panic currently observed.
✅ Don’t let short-term fear dictate long-term investment decisions.

Analyst ‘Sykodelic’ stated that markets are still in an uptrend, utilizing the 50-week simple moving average (SMA) as a key technical indicator. This level has been tested four times since November.
📊 The 50-week SMA is a critical long-term indicator for Bitcoin’s trend.

“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.”