U.Today – Legendary trader John Bollinger has shared his insights on the current price action (BTC), offering his analysis of the market's movements. Known for his creation of the Bollinger Bands, a widely used technical analysis tool, Bollinger's observations remain valued by the cryptocurrency community.
Bollinger notes that a W pattern is forming on Bitcoin's weekly chart, which signals a bullish setup. “A nice W pattern on the weekly chart. I drew a regression channel to highlight the flag that is forming. Bullish setup, awaiting confirmation,” the Bollinger band creator wrote in a recent tweet.
A “W” shaped pattern marks a double bottom, which is often considered a bullish signal. A double bottom forms after a single rounding bottom pattern which can also be the first signal of a possible reversal.
Bollinger mentioned a regression channel, a three-line technical indicator used to analyze the upper and lower boundaries of an existing trend, implying that he is closely watching the price of Bitcoin as it trades within this channel.
Based on the regression channel, Bollinger notes that Bitcoin could be in the process of forming a bullish flag pattern, a classic continuation pattern that suggests the possibility of an upward breakout after a period of consolidation; for this, he awaits confirmation.
BTC Price Action
Bitcoin (BTC) extended its one-week gains to 10% after an eventful week that saw rate cuts by the US Federal Reserve, a pause in cuts by the Bank of England and a decision to hold rates by the Bank of Japan (BoJ) on Friday.
The price of bitcoin soared this week, coinciding with a surge in the stock market as the Federal Reserve cut interest rates by 50 basis points. Bitcoin rallied for four days straight and hit a high of $64,140 in Friday’s trading session before paring gains.
At the time of writing, BTC was down 0.63% over the past 24 hours to $63,087 and up 6.97% so far in September, which is often its weakest month of the year.
According to IntoTheBlock, Bitcoin has become increasingly dominant against stablecoins, with its dominance increasing by 6% so far this year.
This article was originally published on U.Today
