Bollinger Bands creator says Bitcoin forming 'classic' floor near $80K

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

In an X post on April 10, John Bollinger, creator of the Bollinger Bands volatility metric, offered potentially good news to Bitcoin bulls.

Bitcoin may already be establishing a long-term bottom, the latest Bollinger Bands data suggests.

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

The indicator %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 beneath zero is followed by a higher low retest later, something that could now be in play for BTC/USD.

Bollinger confirmed to X 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 yet taken place.

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 said in reference to the S&P 500 on April 9. 

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

Related: Bitcoin, stocks shun CPI print win and give up tariff relief gains — Will BTC whales save the day?

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.