Bitcoin is on the verge of forming a significant "W"-shaped reversal pattern, a technical setup that has attracted attention from John Bollinger, the creator of the Bollinger Bands indicator. This pattern, characterized by two troughs separated by a rebound, could mark the end of the bear market that started in October 2025 if it breaks the current downtrend.
Bollinger highlighted how the current price action aligns with his volatility bands on the daily and weekly charts, describing the formation as “perfectly fractal,” with smaller "w" and "m" shapes mirroring the larger pattern. Such fractal behavior underscores the potential validity of this reversal, indicating that the price could move into a new uptrend if it surpasses the resistance at the pattern's apex.
Adding to the bullish narrative, institutional investors appear to be increasing their exposure to Bitcoin. Recent data show US spot Bitcoin ETFs recording their first net inflow in days, signaling a shift in market dynamics. Though the inflows amounted to approximately $220 million—modest in scale—they reinforce a growing sense of supply absorption around the $60,000 price level. Market analysts note that this sustained price stability, despite previous outflows, suggests significant buying interest that could support a rebound.
Many traders remain cautious, anticipating that the macro bottom may still lie ahead in the latter part of the year. Nonetheless, these emerging technical and market signals are the strongest since Bitcoin’s last bear market in 2022, fueling hope that the prolonged downtrend might soon give way.