Bitcoin (BTC) Price Shows Familiar "Bottom" Behavior, Market May Be Prepped for a Bounce

Bitcoin (BTC) is exhibiting familiar “bottom” behavior at current prices, according to one of its best-known leading indicators.

One of Bitcoin (BTC) ‘s best-known leading indicators is showing familiar “bottom” behavior at current price levels, an analyst has observed.

Pointing out the latest Bollinger bands data, which may indicate that Bitcoin is already establishing a long-term bottom, is presenting favorable trends for buyers.

Bollinger bands %b metric teases BTC price comeback

Announcing the latest developments in his proprietary indicator suite, John Bollinger, the creator of Bollinger bands volatility metric, took to X, formerly Twitter, on April 10 to share an interesting observation.

Analysing weekly timeframes, Bollinger himself drew attention to one of his own indicators, known as “%b,” which offers further clues about market trend reversals.

%b measures an asset’s closing price relative to Bollinger band position, employing standard deviation around a 20-period simple moving average (SMA). Among its insights is the “W” bottom formation, where a first low, denoted by Bollinger as -1, is followed by a higher low, fib0, later — something that could now be in play for BTC/USD.

Bollinger confirmed to his followers:

BTC/USD 1-week chart with Bollinger bands data. Source: John Bollinger/X

On both weekly and daily timeframes, Bollinger bands show no trend shift has taken place yet.

Data from CoinTelegraph Markets Pro and TradingView shows that the daily chart continues to walk down the lower band, with the middle SMA acting as resistance.

BTC/USD 1-day chart with Bollinger bands data. Source: CoinTelegraph/TradingView

Turning to stocks, with which BTC/USD has become increasingly correlated, Jurrien Timmer, director of global macro at Fidelity Investments, drew similar conclusions.

“Revisiting the Bollinger Bands, we have gone from 2 standard deviations above-trend to on-trend to now almost 2 standard deviations below-trend,” he noted about the S&P 500 on April 9.

Bitcoin bounce may follow 10% Nasdaq plunge

As CoinTelegraph continues to report, BTC price bottom targets increasingly center around the $70,000 mark.

That level is significant for several reasons, including as a psychological barrier and its status as a liquidity magnet.

Network economist Timothy Peterson, whose Lowest Price Forward metric previously offered 95% odds that $69,000 would stay intact as support, now sees Bitcoin reversing only after stocks find their own floor.

“Bitcoin led NASDAQ on this decline. As the asset perceived to be at the top of the risk pyramid, I would expect NASDAQ to rally first, and then Bitcoin. Just something to look for,” he revealed this week.

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.