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John Bollinger, one of the most prominent traders, claims that Bitcoin might be in the process of bottoming out.
The Bollinger Bands tool, which was invented by the famed technical analyst, shows that Bitcoin is currently in the process of forming a W bottoming pattern that typically indicates a bullish reversal.
W-bottoms form when prices log a higher low and touch the lower band.
That said, the chartist has cautioned traders that the pattern is yet to be confirmed on Bitcoin's weekly chart.
After the most recent sell-off, Bitcoin briefly breached the horizontal support (marked blue on Bollinger's chart). On Apr. 7, the cryptocurrency plunged to a multi-month low of $74,415, plunging together with U.S. equities. However, it then surged sharply higher on Apr. 9 alongside major stock indices after the U.S. paused the highly controversial tariffs for the vast majority of countries.
Yuri MolchanBitcoin is currently trading at $79,508 after reaching an intraday low of $78,669. The cryptocurrency is currently down 26.9% from the record high of nearly $109,000 that was recorded in January.
Bollinger, who started his career back in the 1970s, is known for making a slew of prescient Bitcoin calls in the past, attracting a significant following within the community.
Meanwhile, Mike McGlone, the commodity strategist who predicted Bitcoin's rise to $100,000, is not insisting that the cryptocurrency will experience a mean revision to $10,000.
Vladislav Sopov
Dan Burgin