The Bollinger Bands creator spots potential “W” bottoms on ETH and SOL charts, hinting at a major market move ahead.
A Signal from the Volatility Master
Veteran technical analyst John Bollinger, the creator of the Bollinger Bands indicator, has urged traders to “pay attention soon” after spotting early signs of a potential bullish reversal in Ether (ETH) and Solana (SOL) charts. His latest analysis suggests a major market move could be imminent — one that might extend to Bitcoin (BTC) if similar patterns emerge.
Bollinger identified “potential W bottoms” — a bullish double-bottom setup — forming within the Bollinger Bands on both ETH and SOL, while Bitcoin continues to build its base. The formation often precedes upward price movement, signaling that the recent volatility could be setting the stage for a rebound.
Bollinger Bands Point to Bullish Reversal
“Gonna be time to pay attention soon, I think,” Bollinger wrote, referring to the growing signs of a reversal.
Ether has tested support near $3,700 twice in October before bouncing higher, while Solana revisited $175 twice during the same period, forming a near-perfect W-shaped bottom on their respective daily charts. Both assets have since begun mild recoveries, suggesting strengthening buying pressure.
Bitcoin, meanwhile, made a sharp ‘V’ recovery after dipping below $104,000 last Friday, now trading near the lower band of its multi-month range that began in mid-May. Analysts note that if Bitcoin follows ETH and SOL’s lead, a broad crypto market rally could follow.
Market Context: History May Repeat Itself
Market analyst Satoshi Flipper reminded traders that the last time Bollinger issued a similar “pay attention” warning — in July 2024 — Bitcoin surged from below $55,000 to over $100,000 within six months.
That period was marked by a “real Squeeze,” Bollinger said, describing a scenario where tight volatility compression precedes an explosive breakout. The current setup, featuring widening Bollinger Bands after months of compression, mirrors those same conditions.
Analysts Eye the 50-Week SMA for Confirmation
Despite the recent correction, analysts maintain that the market remains in an uptrend. Crypto strategist Sykodelic highlighted the 50-week simple moving average (SMA) as a key level of support.
“Every single time the price has come down to tag the 1W 50SMA, there has been mass fear in the market… and every time it has rebounded with strength,” he said.
If history is any guide, the current pullback could once again precede a strong rebound — validating Bollinger’s warning to traders to “pay attention soon.”
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.