Bitcoin rebound puts Bollinger's W-shaped reversal in focus

Bitcoin’s rebound above $60,000 has put a classic reversal signal back on traders’ screens. John Bollinger, the analyst who created Bollinger Bands, said on X that BTC is forming a W-shaped pattern that could test the downtrend that has been in place since October 2025.

For everyday crypto investors, the setup matters because chart patterns can shape short-term sentiment, especially when they line up with improving fund flows. Bitcoin was quoted at $62,507.51, up 2.32%, in the market data cited alongside the analysis.

Bollinger points to a double-bottom setup

Bollinger wrote on X that Bitcoin had previously broken through several bullish patterns, which he described as evidence that the downtrend still had force. He then asked whether the current W-shaped pattern would be the one to break that trend.

A W-shaped reversal is also known as a double bottom. It forms when an asset falls to a low, rebounds, drops again near the prior low, and then attempts to push through the earlier rebound level. Traders often watch that final break because it can suggest sellers are losing control.

Bollinger also posted a daily BTC/USD chart using Bollinger Bands, a volatility indicator that plots bands above and below a moving average. When price moves near the lower band and then recovers, some traders read it as a sign that selling pressure may be stretched, though the indicator does not confirm a trend change on its own.

According to Bollinger, the current Bitcoin pattern appeared “perfectly fractal,” with smaller W-shaped patterns near the lows and a smaller M-shaped pattern near the high between them. He also pointed to a W shape on the weekly chart, suggesting the pattern was visible across more than one timeframe.

Bollinger has already shown a positive stance on Bitcoin this year. In early May, he disclosed a new long position through his Bitcoin investment vehicle, according to Cointelegraph.

ETF flows add another piece to the market picture

The chart discussion comes as institutional demand shows signs of returning. Axel Adler Jr., a contributor to on-chain analytics platform CryptoQuant, said on X that Bitcoin is late in its bear cycle and that the exchange-traded fund segment had signaled easing pressure for the first time.

A spot Bitcoin exchange-traded fund, or ETF, lets investors get Bitcoin exposure through a traditional stock-market product rather than holding the token directly. U.S. spot Bitcoin ETFs recorded their first net inflows in 10 days on Friday, according to figures cited by Adler.

Trader Daan Crypto Trades said on X that the $220 million in inflows was not a large amount, but he connected it to Bitcoin’s ability to hold the roughly $60,000 area despite earlier ETF outflows. He said that could become meaningful if BTC continues to recover, because it would suggest buyers absorbed supply around that level.

Cointelegraph has reported that several Bitcoin price indicators are showing signals last seen during the 2022 bear market. It also reported that many market participants still expect a later macro bottom, with some looking to the third quarter or beyond.

The takeaway is narrow but clear: Bollinger is watching for confirmation of a reversal pattern, while ETF flows and the $60,000 area are becoming key reference points. None of those signals guarantees a new uptrend, but together they explain why Bitcoin’s latest bounce is getting attention beyond the usual day-to-day price move.

This story draws on original reporting from Cointelegraph.