John Bollinger said that a “W” bottom is forming on the Ethereum and Solana charts, which could signal the start of a new uptrend.
John Bollinger spotted a potential “W” bottom on the ETH and SOL charts
Well-known technical analyst John Bollinger, creator of the Bollinger Bands indicator, said that a potential “W” bottom is forming on the Ethereum (ETH) and Solana (SOL) charts, which could indicate the approach of a strong market movement.
According to him, a similar signal has not yet appeared on the Bitcoin (BTC) chart, but the situation could change quickly:
“Gonna be time to pay attention soon, I think,” Bollinger wrote on the social network.
“W” Bottom: Reversal Signal
The “W” pattern on the Bollinger Bands is considered a bullish signal that appears when the price tests the bottom twice and begins a recovery.
ETH has fallen to $3,700 twice this month and recovered, while SOL repeated a similar trend, testing the $175 level in October. Meanwhile, Bitcoin formed a “V”-shaped decline, falling below $104,000, but later recovered to the lower border of the channel that formed back in mid-May.
“Time to take a closer look” — analysts mentioned 2024
Analyst Satoshi Flipper recalled that the last time Bollinger advised to “closely monitor” the market was in July 2024 — then Bitcoin rose from $55,000 to over $100,000 in six months.
“This is a real Squeeze, and the main sign is a two-candle reversal near the bottom,” the analyst noted at the time.
The Squeeze is Over — Volatility Begins
After months of low activity, Bitcoin’s Bollinger Bands have begun to widen, a sign of increased volatility following record-breaking long-term liquidation last weekend.
Analysts warned back in September of a “volatility storm” that now appears to be starting to materialize.
50-Week SMA Remains Key
Despite BTC’s failure to break the $108,000 resistance level, analysts remain optimistic. Trader Sykodelic noted that the market is still in an uptrend, with the 50-week simple moving average (SMA) having rebounded four times since November.
“Every time the price touched the 1W 50SMA, the market panicked and sold, but then it always recovered with renewed vigor,” he added.
If history repeats itself, ETH and SOL could be the first to signal a reversal, with Bitcoin confirming a new phase of the bull cycle.
Related: Record crypto market crash: 1.6 million traders liquidated, ETH could rise to $5,500
