CMC News

$ETH and $SOL Form Double Bottoms, Bollinger Signals Rally

Renowned technical analyst John Bollinger identified potential W bottom patterns in $ETH and $SOL charts using Bollinger Bands, the #volatility indicator he invented. The formations suggest a significant price movement could be approaching, particularly if similar patterns develop in Bitcoin's price action.

Bollinger noted that Ethereum and Solana appear to be setting up double bottoms while $BTC continues forming its base. A W bottom in Bollinger Bands serves as a bullish reversal signal indicating potential upward price movement, making it a closely watched #technical pattern among traders.

$ETH has touched $3,700 twice during October and appears to be recovering from those levels. $SOL mirrored this movement with a double dip to $175 in October, followed by a minor recovery that aligns with the potential W bottom formation Bollinger identified.

#Bitcoin experienced a major V-shaped dip, falling below $104,000 on Friday before recovering over the weekend. The leading #cryptocurrency now trades at the lower band of a range-bound channel that formed in mid-May when it first broke into six figures.

Analyst Satoshi Flipper observed that the last time Bollinger advised paying attention was in July 2024, which preceded a significant rally. Bitcoin pumped from below $55,000 to over $100,000 in the six months following that signal, highlighting the historical significance of Bollinger's #market observations.

"It is indeed time to pay attention. That's a real Squeeze and the controlling feature is a two-bar reversal at the lower band," Bollinger stated at the time. Following months of tight compression, Bitcoin Bollinger Bands have widened this month as volatility increased with record leverage flush last weekend.