John Bollinger, the inventor of the well-known technical analysis tool known as Bollinger Bands, has recently invested in Bitcoin, an asset that his own indicator is presently signaling bullish for.
Bollinger, who created this indicator in the 1980s, shared via a post on X that one of his fund’s proprietary trading models had turned positive towards bitcoin and thus taken a position. Bollinger Bands are volatility bands set at two standard deviations above and below a token’s 20-day moving average price. A wider gap indicates volatile conditions, while narrower bands suggest calm.
Traditionally, surpassing the upper band signals strong upward momentum after a period of compression. On Wednesday, Bitcoin closed above its daily chart’s upper Bollinger Band for the second time since mid-January, with its price at $80,484 against an upper band reading of $81,549, according to TradingView data. This breakout followed the asset’s tightest-ever band reading, known as squeezes, which often precede significant movements in either direction.
The chart displays Bitcoin’s daily price fluctuations using a candlestick format with Bollinger bands. The key question heading into the weekend is whether Bitcoin can maintain its position above the upper band, a bullish technical signal. Conversely, any rejection here would relegate the price back to the chop zone.
As of press time, Bitcoin was trading above $80,000. Over the past 30 days, it has risen approximately 9%, yet remains 36% below its all-time high in October 2025 of $126,000.