Bitcoin (BTC) appears to be forming a “perfect fractal” reversal pattern, a sign that some analysts hope might signal the end of the current bear market.
Key points include that Bitcoin is nearing completion of what could be a significant “W”-shaped reversal. Analyst John Bollinger suggested that if this pattern succeeds, it might break the downward trend that has persisted since October 2025. There’s also a gradual return of institutional interest around the newly established $60,000 benchmark.
In a recent post, Bollinger, who developed the Bollinger Bands volatility indicator, discussed the “W” shaped double dip in the BTC/USD chart. He noticed, “$BTC has broken a series of bullish patterns, showcasing the strength of the downtrend.” He pondered, “Will this ‘W’ break the trend?”
A “W” shaped reversal typically features two swing lows where the price initially fails to rise, but ultimately breaks past that resistance level, starting a new upward trend. Bollinger provided a chart indicating how the current price settings align with the lower band of the Bollinger Bands indicator on the daily time frame. “This is entirely fractal, with a small ‘w’ at the bottom and a little ‘m’ at the top,” he noted, pointing out the ‘W’ on the weekly chart as well.
Bollinger has maintained a positive outlook on BTC for quite some time. In early May, he even disclosed a new long position via a Bitcoin investment vehicle. As noted by Cointelegraph, several price indicators are signaling trends not seen since the previous bear market in 2022. However, many in the market suspect that the next major bottom is still forthcoming, potentially in the third quarter or beyond.
On another note, analyst Axel Adler Jr. from the on-chain analytics platform CryptoQuant highlighted the resurgence of institutional buying interest. On Friday, the U.S. spot Bitcoin exchange-traded fund (ETF) experienced its first net inflows in ten days. He summarized, “Bitcoin is in the late stages of a bearish cycle, but the ETF segment is showing signs of easing pressure for the first time.”
Trader Daan Crypto Trades indicated that while the $220 million inflow isn’t overwhelming, it could still influence BTC price support moving forward. “It’s also noteworthy that the price has held steady around the $60,000 mark despite considerable outflows. If the price rebounds next week, it would make sense, as it indicates significant absorption has taken place,” he shared with his followers.
