The creator of the popular Bollinger Bands technical analysis indicator has taken a position on Bitcoin, an asset on which his own indicator is currently bullish.
John Bollinger, who developed the indicator in the 1980s, said in an article that one of his investment fund’s proprietary trading models turned positive on bitcoin and took a position accordingly.
Bollinger Bands are volatility bands that lie 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 signals strong bullish momentum, especially after a squeeze period.
Bitcoin closed above its upper Bollinger band on the daily chart on Wednesday, the second such close since mid-January, with the price sitting at $80,484 versus an upper band reading of $81,549, according to TradingView data. The breakout follows the asset’s tightest band reading ever. These so-called squeezes often pave the way for big moves in either direction.
The chart shows daily Bitcoin price fluctuations in candlestick form with Bollinger bands.
The setup heading into the weekend is whether Bitcoin gains a foothold above the upper band. This would be a bullish technical signal, while a rejection here would bring the price back into the breakdown zone.
Bitcoin was trading above $80,000 at press time. The token is up about 9% over the past 30 days, but remains 36% below its October 2025 all-time high of $126,000.
