# Bitcoin Nears 'W'-Shaped Reversal as Analyst Eyes Downtrend End

**Published:** 2026-07-04T17:02:23.505Z  
**Topic:** Bitcoin%5C  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/81c2e2d3-25ed-4b81-8668-ed469a62348c

Bitcoin is completing a "W"-shaped reversal pattern, according to John Bollinger, creator of Bollinger Bands. BTC trades at $61,556 after a correction from

Bitcoin is nearing the completion of a "W"-shaped reversal pattern, a technical formation that John Bollinger, creator of the Bollinger Bands volatility indicator, suggests could signal the end of the cryptocurrency's downtrend since October 2025 [1]. The asset traded at $61,556 on Thursday, July 2, 2026, reflecting a moderate recovery over the prior 24 hours after failing to consolidate above $82,000 in May [2].

| At a glance | |
|---|---|
| Price | $61,556 [2] |
| Key Pattern | "W"-shaped double bottom [1] |
| Key Level | $65,000 (central apex breakout) [2] |
| Catalyst | First net US spot Bitcoin ETF inflows in 10 days [1] |

## Reversal Pattern and Market Sentiment

John Bollinger highlighted the "W"-shaped double bottom on BTC/USD charts in X posts on Friday, noting its "perfectly fractal" nature with smaller "w" patterns at nadirs and an "m" at the apex [1]. This pattern, involving two swing lows with a rejected rebound, suggests a potential new uptrend if the price breaks through the rejection level [1]. Bollinger has been bullish on BTC, revealing a new long position via his investment vehicle in early May [1].

Despite this technical optimism, market participants broadly anticipate a macro bottom later in Q3 or beyond [1]. Bitcoin's price has struggled to sustain rallies, invalidating multiple bullish formations due to selling pressure since its failed attempt to consolidate above $82,000 in May [2]. The current level represents a zone of high friction between buyers and sellers, according to historical behavior against the standard deviation indicator [2].

## ETF Flows and Macroeconomic Factors

US spot Bitcoin exchange-traded funds (ETFs) recorded their first net inflows in ten days on Friday, totaling $220 million [1]. While not "massive," these inflows could support BTC price going forward, especially given that the ~$60,000 region has held despite previous outflows, indicating significant absorption [1]. However, capital flow data also reveals persistent divestments in US crypto-asset ETFs [2].

Macroeconomic challenges continue to influence institutional investor sentiment, with central bank minutes keeping investors alert regarding potential restrictive monetary adjustments globally [2]. Bitcoin's performance also tracks U.S. equity trends, particularly the Nasdaq 100 and S&P 500 [3]. Economist Timothy Peterson suggests that any sustainable upside in Bitcoin depends on a risk-on shift in the stock market and easing macroeconomic headwinds, especially interest rate volatility [3].

## Key Levels

| Support Zones | Resistance Targets |
|---|---|
| $60,000 [1] | $65,000 (central apex breakout) [2] |

## What to watch

*   **Weekly Candle Close:** The upcoming weekly candle close is a critical technical milestone to validate or dismiss the effectiveness of the "W" pattern [2].
*   **$65,000 Breakout:** Consolidation above the central apex at $65,000 is necessary for the multi-month downtrend to formally conclude [2].
*   **ETF Flow Trends:** Continued monitoring of US spot Bitcoin ETF net flows will indicate sustained institutional interest and potential price support [1].

The completion of this "W"-shaped reversal pattern could mark a significant shift for Bitcoin, but its validation hinges on key price levels and broader macroeconomic conditions.

## Sources
1. Cointelegraph — [Bollinger Bands creator eyes Bitcoin bear-market end, 'W'-shaped reversal](https://cointelegraph.com/markets/bollinger-bands-creator-eyes-bitcoin-bear-market-end-w-shaped-reversal)
2. Cryptonews — [Legendary Trader John Bollinger Spots Possible Double-Bottom ...](https://cryptonews.net/news/analytics/33094388/)
3. Cryptonews — [Bollinger Bands Inventor Just Flagged a Bitcoin Reversal ...](https://cryptonews.com/news/bollinger-bands-inventor-just-flagged-a-bitcoin-reversal-pattern-near-80k/)

---
Cite as: TrendWatcher, "Bitcoin Nears 'W'-Shaped Reversal as Analyst Eyes Downtrend End", https://www.trendwatcher.in/article/81c2e2d3-25ed-4b81-8668-ed469a62348c