U.Today – Legendary trader John Bollinger shared his insights on the current (BTC) price action, offering his analysis of market movements. Known for creating the Bollinger Bands, a widely used technical analysis tool, Bollinger continues to value his observations within the cryptocurrency community.
Bollinger is watching a W pattern form on Bitcoin’s weekly chart, which indicates a bullish setup. “Nice little W pattern on the weekly chart. I drew a regression channel to highlight the flag forming. Bullish setup, Awaiting confirmation,” the Bollinger Band creator wrote in a recent tweet.
The “W” pattern represents a double bottom, often considered a bullish signal. A double bottom forms after a single rounded bottom pattern, which can also be the first signal of a potential reversal.
Bollinger mentioned a regression channel — a three-line technical indicator used to analyze the upper and lower boundaries of an existing trend, meaning he is closely watching the price of bitcoin as it moves within this channel.
Based on the regression channel, Bollinger notes that Bitcoin may be in the process of forming a bullish flag formation, a classic continuation pattern suggesting a possible breakout to the upside after a period of consolidation; he is waiting for confirmation of this hypothesis.
BTC price action
Bitcoin (BTC) extended its weekly gains to 10% after an eventful week that saw the US Federal Reserve cut interest rates, the Bank of England halt its cuts and the Bank of Japan (BoJ) decide to keep interest rates on hold on Friday.
Bitcoin has surged this week, coinciding with a rally in the stock market as the Federal Reserve cut interest rates by 50 basis points. Bitcoin rose for four days in a row, reaching a peak of $64,140 in Friday’s trading session before paring gains.
At the time of writing, BTC price is down 0.63% in the past 24 hours to $63,087, and is up 6.97% in September, often the weakest month of the year.
According to IntoTheBlock, Bitcoin is becoming an increasingly dominant cryptocurrency over stablecoins, with its lead increasing by 6% year-on-year.
