Bitcoin is completing what Bollinger Bands creator John Bollinger calls a ‘perfectly fractal’ reversal pattern, raising fresh hope that the prolonged downtrend dating back to October 2025 may finally be nearing its end.
Bollinger Flags ‘W’ Double Bottom on BTC/USD
In X posts published Friday, Bollinger identified a ‘W’-shaped double bottom forming on the BTC/USD daily chart, noting how cleanly the setup aligns with the lower band of his own Bollinger Bands volatility indicator.
‘$BTC has seen a series of bullish patterns broken, evidence of the power of the downtrend,’ Bollinger wrote, before asking: ‘Will this W be the one that breaks the trend?’
A ‘W’-shaped reversal requires two swing lows separated by a rejected rebound. Price must then break above that rejection level to confirm a new uptrend. Bollinger described the current structure as fractal in nature, pointing to small ‘w’ formations at the lows and a small ‘m’ at the interim peak, with the same pattern visible on the weekly chart as well.
Bollinger has maintained a bullish stance on Bitcoin for some time. In early May he disclosed a new long position via his personal Bitcoin investment vehicle.
Multiple Bear-Market Signals Flash Simultaneously
The pattern emerges as an increasing number of price indicators print readings last seen during the 2022 bear market. Despite the clustering signals, the broader market consensus still places the next macro bottom in Q3 or later, with a price level near $50,000 frequently cited.
Bitcoin ETF Inflows Return After Ten-Day Drought
Reinforcing the tentative recovery narrative, US spot Bitcoin exchange-traded funds recorded their first net inflows in ten days on Friday. The figure came in at approximately $220 million, according to data cited by analysts.
CryptoQuant contributor Axel Adler Jr. framed the development as a late-cycle signal: ‘Bitcoin is in the late stage of the bear cycle, but the ETF segment has for the first time signaled that the pressure is easing.’
Trader Daan Crypto Trades described the inflow figure as ‘not massive’ but highlighted a more significant underlying dynamic. Bitcoin has held the approximately $60,000 region throughout a sustained stretch of ETF outflows, suggesting meaningful demand absorption has already taken place. If price bounces further into the following week, he argued, that absorption becomes a constructive foundation for further upside.
What to Watch
The critical test for Bollinger’s thesis is whether Bitcoin can break above the ‘W’ pattern’s neck line, the interim rejection high between the two swing lows. A sustained close above that level on the daily chart would technically confirm the reversal and challenge the October 2025 downtrend structure. Failure to clear it would extend the sequence of bullish patterns that Bollinger himself notes have repeatedly been broken during this cycle.
