U.Today – Insights from John Bollinger on Bitcoin Price Action

Legendary trader John Bollinger has shared his insights on the current Bitcoin (BTC) price action, providing analysis on market movements. Known for creating the Bollinger Bands, a widely used technical analysis tool, Bollinger’s observations are valued by the crypto community.

W Pattern on Bitcoin Chart

Bollinger observes a W pattern forming on the weekly Bitcoin chart, marking a bullish setup. He tweeted, “Nice little W pattern on the weekly BTCUSD chart. I drew a regression channel to highlight the flag that is forming. Bullish setup, Awaiting confirmation.”

A “W” pattern indicates a double bottom, often seen as a bullish signal and can signify a potential reversal.

Bollinger also mentioned a regression channel—a three-line technical indicator used to analyze the upper and lower limits of an existing trend—implying he is closely watching Bitcoin’s price action as it trades within this channel.

According to the regression channel, Bollinger notes that Bitcoin might form a bullish flag pattern, a classic continuation pattern suggesting an upward breakout may occur after consolidation, and he’s awaiting confirmation.

BTC Price Action

Bitcoin (BTC) increased its one-week gains to 10% after a week marked by rate cuts by the U.S. Federal Reserve, a pause in cuts by the Bank of England, and a decision to hold rates by the Bank of Japan (BoJ).

BTC soared this week, coinciding with a surge in the equities market following a 50 basis points interest rate cut by the Federal Reserve. Bitcoin rallied for four consecutive days, hitting a high of $64,140 before reducing gains.

At the time of writing, BTC was down 0.63% in the last 24 hours to $63,087, showing a 6.97% increase so far in September, traditionally a weaker month for BTC.

According to IntoTheBlock, Bitcoin has become increasingly dominant over Ethereum and stablecoins, with a 6% increase in its dominance year-to-date.

This article was originally published on U.Today.