Inventor of Bollinger Bands suggests Bitcoin is establishing a ‘traditional’ support level around $80,000
Bitcoin (BTC) is currently showing signs of forming a bottom at current prices, as indicated by one of its prominent leading indicators.
In an X post on April 10, John Bollinger, the creator of the Bollinger Bands volatility metric, provided potentially positive news for Bitcoin enthusiasts.
Bollinger bands %b metric suggests a potential BTC price recovery
According to the latest Bollinger Bands data, Bitcoin might already be establishing a long-term bottom.
By analyzing weekly timeframes, Bollinger highlighted one of his proprietary indicators, known as “%b,” which offers additional insights into market trend reversals.
The %b indicator measures an asset’s closing price relative to Bollinger Band position, utilizing standard deviation around a 20-period simple moving average (SMA).
One of the patterns it identifies is the “W” bottom formation, where an initial low below zero is followed by a higher low retest later, a scenario that could currently be in play for BTC/USD.
Bollinger confirmed to X followers:
“Classic Bollinger Band W bottom setting up in $BTCUSD. Still needs confirmation.”
BTC/USD 1-week chart with Bollinger Bands data. Source: John Bollinger/X
On both weekly and daily timeframes, there is no indication of a trend shift happening yet according to Bollinger Bands.
Data from Cointelegraph Markets Pro and TradingView shows that the daily chart continues to move along the lower band, with the middle SMA acting as resistance.
BTC/USD 1-day chart with Bollinger Bands data. Source: Cointelegraph/TradingView
Regarding stocks, which have become increasingly correlated with BTC/USD, Jurrien Timmer, director of global macro at Fidelity Investments, reached similar conclusions.
“Revisiting the Bollinger Bands, we have transitioned from being 2 standard deviations above trend to on-trend to now nearly 2 standard deviations below-trend,” he stated in reference to the S&P 500 on April 9.
“Once again, oversold but not at a historic extreme.”
Bitcoin might see a rebound following a 10% drop in Nasdaq
As reported by Cointelegraph, the potential bottom targets for BTC price are increasingly focused around the $70,000 level.
Related: Bitcoin, stocks ignore CPI print win and surrender tariff relief gains — Can BTC whales come to the rescue?
This level is noteworthy for various reasons, including serving as a psychological barrier and a liquidity magnet.
Network economist Timothy Peterson, whose Lowest Price Forward metric previously indicated 95% odds of $69,000 remaining as support, now anticipates Bitcoin reversing course only after stocks establish their own support.
“Bitcoin led NASDAQ on this decline. As the asset perceived to be at the peak of the risk pyramid, I anticipate NASDAQ to recover first, followed by Bitcoin. Just something to watch for,” he revealed this week.
“However, I believe NASDAQ still has another -10% to fall.”
Bitcoin vs Nasdaq comparison. Source: Timothy Peterson/X
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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