Bitcoin (BTC) Price Analysis: BTC Stalls at $80K Awaiting Market Bottom

Bitcoin (BTC) is showing signs of a market bottom near $80,000, according to the creator of the Bollinger Bands volatility indicator.

Bitcoin (BTC) price has been hovering in a familiar territory, and though it may seem like a lot of movement, in the grand scheme of things, it’s still a consolidation. As the cryptocurrency market continues to recover, investors are keeping a close eye on any signs of a market bottom. According to John Bollinger, creator of the Bollinger Bands volatility indicator, Bitcoin is showing signs of a market bottom.

In a post on X (formerly Twitter), Bollinger highlighted a potential "W' formation on the Bitcoin price chart. This formation has signaled trend reversals and high bullish momentum for Bitcoin in the past. Analyzing the prices on a weekly timeframe, he pointed to his own '%b' indicator. This indicator measures the asset's closing price relative to its Bollinger Band position.

Classic Bollinger Band W bottom setting up in $BTCUSD. Sill needs confirmation.https://t.co/v1qfBbEoDVRemember: The fraudsters are legion. I will never ask you for anything. #BollingerBands #btc

“Classic Bollinger Band W bottom setting up in $BTCUSD. Still needs confirmation,” Bollinger stated. He further mentioned that with some validation from the price action, the trend reversal could be declared definitively. The 'W' bottom formation occurs when a first low dips below zero and is followed by a higher low retest. This pattern is being replicated by Bitcoin.

Despite this promising chart movement, data from TradingView shows the Bitcoin prices hovering near the lower band on the indicator. This might suggest that the Bollinger Bands are not yet fully confirming the potential market bottom.

As the S&P 500 continues to show signs of a bear market, it seems that the stock market might be recovering slower than expected. Jurrien Timmer, director of Global Macro at Fidelity Investments, noted observations about the S&P 500.

"Revisiting the Bollinger Bands, we have gone from 2 standard deviations above-trend to on-trend to now almost 2 standard deviations below-trend. It appears the 1987 bear market crashed around -1.5 standard deviations and the 2008 bear market crashed around -2 standard deviations. Perhaps we'll get a 1 standard deviation move to the downside to complete the cycle?"

This observation could have implications for Bitcoin, especially with the close correlation between the cryptocurrency market and the stock market.

Moreover, with Bitcoin and other cryptocurrencies experiencing a recent surge in price action, it appears that the recent lows may have been a turning point for the cryptocurrency market.

"Bitcoin led NASDAQ on this decline… I would expect NASDAQ to rally first, and then Bitcoin," added network economist Timothy Peterson. This suggests that the stock market could experience another slump before Bitcoin finds its bottom.

Bitcoin price is currently consolidating at $80K as of the past few days, and investors are getting a bit flustered. With reports of a Bitcoin price bottom at $70,000, investor sentiments are still quite mixed. As such, let’s take a quick peek at the latest Bitcoin price action and form a short-term BTC price prediction.

Bitcoin price analysis: BTC slumps but makes valiant recovery

The day began with Bitcoin starting at $82,500 as it traded at 1:00. The previous day’s downtrend continued, and Bitcoin slid along with it. By 4:35, Bitcoin had already dropped to $81,600.

For the next few hours, Bitcoin showed range-bound behavior as it displayed an inability to break out of the $81,500 support. There wasn't enough buying pressure for a positive movement, and Bitcoin faced consistent resistance at $82,300. Finally, at 13:30, Bitcoin broke out of the trading range.

Chart 1: published on TradingView, April 11

After the rejection, Bitcoin dropped to a support level at $78,600 within the next two hours. This downward movement was also validated by a death cross on the MACD at 15:05. With the RSI now oversold, a trend reversal occurred. But the lack of buying pressure again led to insignificant upward movement. The price plateaued around the $80K mark and faced a reversal.

However, today, Bitcoin formed an early uptrend and has since been climbing. At 9:20, the Bitcoin price ascended past the resistance.

BTC price prediction: Is Bitcoin headed for $83,000?

As of the latest update, Bitcoin is on the brink of touching $83,000. It's important to note that the price has continued to grow despite overbought conditions and now looks to be facing a trend reversal. Given the highly bullish trend, the reversal may be potent as well.

If that does happen