FameEX Hot Topics | Analyst John Bollinger Flags Potential 'W-Bottom' for Ethereum and Solana, Says Bitcoin Base is "Brewing"

Renowned technical analyst John Bollinger, the creator of the widely-used Bollinger Bands indicator, has recently brought attention to potential bullish developments for two major altcoins. He suggested that the price charts for Ethereum (ETH) and Solana (SOL) might be forming a "W-bottom" pattern, a classic technical analysis formation often interpreted as a strong signal for a bullish reversal and significant potential price appreciation. However, Bollinger tempered this optimistic outlook for the altcoins by noting that this promising pattern has not yet clearly materialized on Bitcoin's (BTC) chart. He emphasized this point by advising that "market participants might need to start paying close attention now," indicating a potentially critical juncture for the market.

The specific technical setups for ETH and SOL provide substance to Bollinger's observation. For Ethereum, the pattern is evidenced by its price testing the $3,700 support level twice within the month and bouncing back on each occasion, firmly establishing that area as a key zone of buyer interest. Solana exhibited a remarkably similar structure back in October, when its price dipped twice to around the $175 mark before staging a recovery, thereby forming the distinct two-trough structure of a potential double bottom. In contrast, Bitcoin's recent price action has been more volatile and less defined, characterized by a sharp "V-shaped" swing that saw it briefly fall below $104,000 before a weekend recovery left it trading near the lower boundary of its established range.

The weight of Bollinger's warning to "pay close attention" is significantly amplified by recent history. As noted by crypto analyst "Satoshi Flipper," the last time Bollinger issued similar public advice was in July 2024. In the six months that followed that signal, Bitcoin's price skyrocketed from below $55,000 to over $100,000, a monumental rally that would have rewarded attentive investors handsomely. Satoshi Flipper reinforced the current signal's validity, stating, "This is a genuine squeeze," a condition marked by a two-bar reversal at the lower Bollinger Band that occurred after a period of suppressed volatility exploded into a significant market move.

Despite the constructive patterns in altcoins and the compelling historical parallel, Bitcoin still faces immediate technical hurdles. The primary challenge is the $108,000 resistance level, a zone that previously acted as support but has now reversed its role. Since last Friday's sharp decline, Bitcoin has failed in multiple attempts to break back through this price point, cementing it as a key short-term obstacle that must be overcome to validate a more bullish near-term thesis and build a stronger base for a potential advance.

Nevertheless, amidst the fear and panic that often accompanies such volatility, a longer-term perspective offers a countervailing sense of optimism. Many analysts argue that the recent downturn does not signal a transition into a bear market. Analyst "Sykodelic" pointed to the 50-week Simple Moving Average (SMA)—a key benchmark for long-term trends—as evidence that the overall bull market remains intact. He observed that Bitcoin has tested the support of the 50-week SMA four times since last November, and on each occasion, the market managed a strong rebound that eventually led to new highs, suggesting the current turbulence may be another temporary shakeout within a larger bullish cycle.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.