Legendary Trader John Bollinger Breaks Silence on Bitcoin (BTC) Price Action: Insights Revealed

Legendary trader John Bollinger has recently shared his insights on the current price action of Bitcoin (BTC), providing his analysis of the market’s movements. As the creator of the Bollinger Bands—an essential tool in technical analysis—Bollinger’s observations are highly regarded within the cryptocurrency community.

Bollinger has noted the formation of a W pattern on the weekly Bitcoin chart, indicating a bullish setup. He tweeted, “Nice little W pattern on the weekly chart. I drew a regression channel to highlight the flag that is forming. Bullish setup, awaiting confirmation.”

The “W” pattern signifies a double bottom, which is often viewed as a bullish signal. This pattern emerges following a single rounding bottom and can suggest the first signs of a potential reversal.

He also referenced a regression channel—comprising three lines used to assess the upper and lower limits of an existing trend—indicating that he is closely monitoring Bitcoin’s price movements within this channel. Based on this regression channel, Bollinger suggests that Bitcoin might be in the early stages of forming a bullish flag pattern. This classic continuation pattern typically signals a possible upward breakout following a consolidation phase; however, confirmation of this pattern is still awaited.

### BTC Price Action

Bitcoin has recently seen a one-week gain of 10% after a significant week that included rate cuts by the U.S. Federal Reserve, a pause in cuts by the Bank of England, and a decision by the Bank of Japan to maintain rates.

The price of Bitcoin surged in conjunction with a rally in the equities market following the Federal Reserve’s decision to cut interest rates by 50 basis points. Over the course of four consecutive days, Bitcoin reached a high of $64,140 during Friday’s trading session before tempering its gains.

As of the latest update, Bitcoin was down 0.63% over the past 24 hours, trading at $63,087, while still up 6.97% throughout September—a month typically considered one of its weakest.

Additionally, data from IntoTheBlock indicates that Bitcoin’s dominance has been on the rise, increasing by 6% year-to-date over other cryptocurrencies and stablecoins.