Bitcoin (BTC) has spent the past several weeks trapped in a brutal downtrend.
The cryptocurrency has consistently invalidated various bullish patterns due to the sheer strength of the current downtrend. However, there might finally be some semblance of hope for the battered BTC bulls.
Earlier this Thursday, legendary market technician John Bollinger, the creator of the universally utilized Bollinger Bands volatility indicator, pointed to an intricate double-bottom "W" pattern that is currently carving itself into the charts.
Bollinger has indicated that this might finally be the bullish pattern that will mark the end of the downtrend after multiple failed attempts.
A fractal 'W'
The chart shared by Bollinger shows that the cryptocurrency has endured a series of severe corrections after a failed rally to $82,000 in May.
The plummeting prices pushed the lower boundaries of the Bollinger Bands, thus creating a three-stage bottoming formation.
Bollinger noted that the setup is "perfectly fractal," meaning that it contains micro-patterns inside the macro structure.
The trader hinted at an even larger technical phenomenon, urging traders to look at the weekly time frame for extra credit.
On a higher macro time frame, this entire daily correction is merely carving out the second leg of a massive, higher-time-frame fractal "W." If the daily structure holds and breaks out above the central $65,000 apex, it could potentially put an end to a multi-month downtrend.
BTC is currently changing hands at $61,556 following a very modest recovery. However, the cryptocurrency remains plagued by persistent exchange-traded fund outflows and rate hike fears.
U.Today Editorial Team
Dan Burgin
