Bollinger Bands Creator Says Bitcoin Forming 'Classic' Floor Near $80K

Bitcoin may be in the process of building a solid price floor near the $80,000 level, according to John Bollinger, the creator of the widely-used Bollinger Bands volatility indicator.

In an April 10 post on X, Bollinger noted that Bitcoin’s price action is beginning to resemble a “W” bottom formation, also known as a double bottom, on the weekly chart. This pattern, if confirmed, could signal the beginning of a bullish reversal after recent consolidation.

“Classic Bollinger Band W bottom setting up in $BTCUSD,” Bollinger wrote. “Still needs confirmation.”

BTC/USD 1-week chart with Bollinger Bands data. Source: John Bollinger/X

Understanding the %b Indicator

Bollinger pointed specifically to the %b indicator, a tool that measures an asset’s price in relation to its Bollinger Bands. The bands themselves are plotted two standard deviations above and below a 20-period simple moving average (SMA), helping traders visualize volatility and trend shifts.

The %b value moves between 0 and 1, representing how close the current price is to either the lower or upper band. A classic double bottom signal appears when the %b drops below zero, rebounds, and forms a higher low—indicating decreasing downside momentum.

Although Bitcoin has not yet confirmed a full trend reversal, the current structure is showing early signs of stability and potential upside, Bollinger explained.

BTC/USD 1-day chart with Bollinger Bands data. Source: TradingView

Bitcoin and Stock Market Correlation

BTC has shown increasing correlation with traditional markets, particularly major stock indices. Jurrien Timmer, Director of Global Macro at Fidelity, also referenced Bollinger Bands this week in relation to the S&P 500, noting that prices have dropped from two standard deviations above trend to nearly two below.

“Oversold, but not at an historic extreme,” Timmer commented, suggesting room for further downside before a full recovery.

This correlation matters for Bitcoin as well. Market analyst and economist Timothy Peterson pointed out that Bitcoin has mirrored the broader tech sector’s performance and may wait for equity markets to stabilize before making a strong move upward.

“Bitcoin led NASDAQ on this decline… I would expect NASDAQ to rally first, and then Bitcoin,” Peterson noted. “But I think NASDAQ has another -10% to fall.”

Key Support Levels Ahead

Currently trading around $82,600, Bitcoin’s price continues to hover near key psychological and technical support at $70,000–$80,000. Analysts view this range as critical for maintaining long-term bullish momentum.

While the Bollinger Bands suggest that BTC could be forming a base, traders will be watching closely for a confirmation signal—typically a decisive move higher following the second low in the “W” pattern.

Bitcoin vs Nasdaq comparison. Source: Timothy Peterson/X

Until then, caution remains warranted as both crypto and traditional markets remain under pressure from macroeconomic forces.