Bitcoin Price Prediction: John Bollinger Sees Trend Reversal Ahead for BTC

Bitcoin (BTC) has recovered by 4.5% in the past 7 days after bouncing off the $60,000 support. The creator of a widely used technical indicator sees this rebound as a sign that the top crypto could soon reverse its downtrend.

John Bollinger, the creator of the Bollinger Bands, a well-known technical analysis tool, recently said in an X post that a “W” shape has formed as a result of Bitcoin’s latest price action.

He is referring to a bullish setup that consists of two strong rebounds off key supports that have occurred after the price hit the indicator’s lower band.

The price of the token is now heading to retest the mid-line of the Bollinger Bands indicator. If the price rises past this mark, the odds of a breakout of the $66,000 level will increase dramatically.

Bitcoin ETFs Snap 10-Day Streak of Negative Outflows

Bollinger highlighted that a similar W shape can be found in lower and higher time frames, which is typically considered confirmation via fractals.

This prediction comes at a point when BTC just bounced off its current cycle low at $57,000. However, investors’ sentiment has not yet improved.

Social sentiment remains heavily depressed according to data from Santiment, while whale accumulation slowed down in June. Market participants still seem to be skeptical about this rebound.

That said, ETF inflows snapped a 10-day streak of withdrawals on Friday, as investors poured $224 million into these vehicles. Nonetheless, this week ended with net outflows of $526 million as bearish sentiment prevails.

Weekly Buy Signal Holds as BTC Bounces Off Its Current Cycle Low

We continue to track the development of a buy signal in the weekly chart that has delivered impressive gains in the past 11 years.

In a previous BTC price prediction, we highlighted that bouncing off the $60,000 support should confirm this signal, as this has happened in two out of three instances during this period.

On both occasions, the price of Bitcoin surged to a new all-time high around 6 to 12 months after, and that low marked the cycle’s definite bottom.

Hence, we believe that we are either near or at BTC’s cycle bottom, but still see a 33% chance that BTC will drop to $50,000. Those are not bad odds for a long position at this point, especially if we consider that our long-term target for the token is $200,000.

Break Above $66,000 Could Accelerate the Uptrend to Our $74K Target

Heading to the daily chart, we do see a W-shaped pattern forming. We highlighted in our previous prediction that a long position for BTC at this point would yield a 4x risk-reward ratio, and that suggested trade is already in positive territory.

If we break above the $66,000 level, a short squeeze should help accelerate the uptrend and increase the odds of a retest of the $74,000 level.

The Relative Strength Index (RSI) in this lower time frame just hit 50. If this momentum indicator rises past 60, that would also confirm a buy signal for BTC and could mark the definite end of this bearish cycle.