The technical outlook for Bitcoin has drawn renewed attention, with prominent analyst John Bollinger signaling a possible shift in trend for the BTC/USD pair. Bollinger, the creator of the widely used Bollinger Bands indicator, noted that a key W-shaped reversal pattern is taking shape in Bitcoin’s price. He suggests that if this pattern completes, it could mark the end of the downtrend that has persisted since October 2025.
W formation stands out in technical analysis
Famed for developing the Bollinger Bands, John Bollinger underscored in a post on X that although Bitcoin has recently failed to maintain several bullish signals, strengthening the case for the prevailing downtrend, its current price structure aligns with a W reversal pattern resembling a double bottom.
John Bollinger observed that previous bullish structures in Bitcoin have broken down, reflecting the strength of the bear trend, yet he indicated the emerging W formation could signal a trend reversal.
Typically, the W pattern is validated after two bottom formations and a subsequent breakout above an intermediate resistance level. Bollinger’s shared chart illustrates that Bitcoin’s daily price movements are tracking along the lower band of the Bollinger Bands. He further explained that the pattern is fractal in nature, observing similar smaller-scale top and bottom formations within the same structure, and identified the W pattern on the weekly chart as well.
Bollinger has maintained an optimistic view on Bitcoin in recent months. Early in May, he disclosed that he had opened a new long position in a Bitcoin investment vehicle.
Market signals and expectations diverge
Several price indicators have begun to emit signals not seen since the last bear market in 2022. However, a broad segment of market participants believes that the ultimate market bottom has yet to be formed on a macro scale. According to this view, a definitive bottom may not emerge until the third quarter or later.
ETF inflows and the $60,000 support area under watch
On-chain analyst Axel Adler Jr. from CryptoQuant emphasized the importance of renewed interest from institutional buyers. Last Friday, U.S.-listed spot Bitcoin ETFs registered their first net inflow in ten days, interpreted as an early sign that selling pressure on the institutional side could be abating.
Adler Jr. pointed out that Bitcoin is now in the late stages of its bear cycle but noted that the ETF sector has shown an initial indication that outflows are slowing. The net inflow reached $220 million. While not a huge amount in absolute terms, this was seen as a supportive factor for Bitcoin’s price direction.
Daan Crypto Trades remarked that although the $220 million inflow is not overwhelmingly large, it could provide crucial support, adding that Bitcoin’s resilience around the $60,000 level, despite significant outflows, signals a strong absorption phase.
Trader Daan Crypto Trades highlighted the significance of the $60,000 mark. According to him, if Bitcoin posts a stronger reaction in the coming week, this level could become a major support area where substantial selling is being absorbed. The simultaneous rebound in institutional demand and the emergence of the W pattern has led investors to focus closely on these levels in the short term.
