The creator of the popular Bollinger Bands technical analysis indicator has taken a position in bitcoin, an asset in which his own indicator is currently showing an uptrend.
John Bollinger, who developed the indicator in the 1980s, said in an X post that one of his investment fund’s proprietary trading models had taken a positive turn in bitcoin and had taken a position accordingly.
Bollinger Bands are volatility bands that sit two standard deviations above and below the 20-day moving average of a token’s price. A wider gap between the two bands indicates volatile conditions, while a narrower band indicates calm.
A break above the upper band traditionally indicates strong bullish momentum, especially after a period of compression.
bitcoin It closed above its upper Bollinger Band on the daily chart on Wednesday, the second such close since mid-January, with the price at $80,484 versus an upper band reading of $81,549, according to TradingView data. The breakout came after the tightest band reading ever recorded for the asset. These so-called contractions often set the stage for large movements in either direction.
The chart shows daily bitcoin price swings in candlestick format with Bollinger bands.
The setup heading into the weekend is whether Bitcoin establishes a foothold above the upper band. That would be a bullish technical signal, while a rejection here returns the price to the cutoff zone.
Bitcoin was trading above $80,000 at the time of this publication. The token is up about 9% over the past 30 days, but remains 36% below its October 2025 all-time high of $126,000.
