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Legendary trader John Bollinger has shared his insights on the current Bitcoin (BTC) price action, offering his analysis of the market's movements. Known for his creation of the Bollinger Bands, a widely used technical analysis tool, Bollinger's observations remain valued by the crypto community.

Bollinger observes a W pattern forming on the weekly Bitcoin chart, marking a bullish setup. "Nice little W pattern on the weekly BTCUSD chart. I drew a regression channel to highlight the flag that is forming. Bullish setup, Awaiting confirmation," the Bollinger band creator wrote in a recent tweet.

A "W" pattern marks a double bottom, often regarded as a bullish signal. A double bottom is formed following a single rounding bottom pattern which can also be the first sign of a potential reversal.

Bollinger mentioned a regression channel — a three-line technical indicator used to analyze the upper and lower limits of an existing trend, implying that he is closely watching Bitcoin's price as it trades within this channel.

Based on the regression channel, Bollinger observes that Bitcoin might be in the process of forming a bullish flag pattern, a classic continuation pattern that suggests the possibility of an upward breakout after a period of consolidation; for this, he awaits confirmation.

BTC price action

Bitcoin (BTC) increased its one-week gains to 10% after an eventful week that saw rate cuts by the U.S. Federal Reserve, a pause in cuts by the Bank of England and a decision to hold rates by the Bank of Japan (BoJ) on Friday.

Bitcoin soared this week, coinciding with a surge in the equities market as the Federal Reserve slashed interest rates by 50 basis points. Bitcoin rallied for four days in a row, reaching a high of $64,140 in Friday's trading session before reducing gains.

At the time of writing, BTC was down 0.63% in the last 24 hours to $63,087 and up 6.97% so far in September, which is often its weakest month of the year.

According to IntoTheBlock, Bitcoin has become increasingly dominant over Ethereum and stablecoins, with a 6% increase in its dominance year-to-date.