Analyst Spots Potential Moves in Ether and Solana

Well-known technical analyst John Bollinger has noticed some interesting patterns in the charts for Ether (ETH) and Solana (SOL), hinting at possible significant movements, particularly if Bitcoin follows suit.

Bollinger pointed out a potential “W” bottom forming in the Bollinger Bands, a volatility indicator he created, on the ETH and SOL charts. However, he mentioned that this pattern hasn’t yet appeared on the Bitcoin (BTC) chart.

“I think we should start paying attention soon,” he remarked.

It seems like ETH and SOL are developing a double-dip pattern, while Bitcoin is still establishing its base. The “W” bottom in Bollinger Bands serves as a bullish reversal signal that might lead to price increases.

This month, Ether has dipped to $3,700 twice but looks to be on a recovery path. Similarly, Solana mirrored this pattern, reaching a low of $175 in October before showing some signs of recovery.

Bitcoin experienced a sharp “V”-shaped decline, dropping below $104,000 last Friday, but it managed to bounce back over the weekend, trading within the lower range of the established channel since it crossed into six digits back in mid-May.

Analyst Satoshi Flipper noted that Bollinger last suggested exercising caution in July 2024, which saw Bitcoin’s price jump from under $55,000 to over $100,000 in the subsequent six months.

“It’s definitely time to watch closely. This is a significant squeeze, and the control function is showing a two-bar inversion on the lower band,” he commented at that time.

Recently, after months of tight market conditions, the Bollinger Bands for Bitcoin have widened this month, particularly following a record spike in leverage that increased volatility. Analysts anticipated this “storm of volatility” to crop up during a lull in September.

BTC has struggled to break past the $108,000 support-turned-resistance level since that sell-off on Friday. Yet, many analysts remain optimistic, asserting that, despite the prevailing fear and uncertainty, we aren’t officially in a bear market.

Using the 50-week simple moving average as a technical barometer, analyst “Sycoderic” indicated that the market is still on an upward trend. He remarked, “Whenever the price dipped below the 1W 50SMA, fear and panic took hold, leading to widespread selling, with people declaring it was over. Each time, however, the price rebounded strongly and continued to rise.”