Bitcoin's recent price action is signaling a potential end to its upward trend, which began in April from lows below $75,000, according to well-known trading analyst John Bollinger, the creator of the Bollinger Bands volatility metric. In a recent analysis, Bollinger pointed to a possible "failure" of the Bitcoin price to sustain its rebound, suggesting that the cryptocurrency's price could be facing a reversal or consolidation phase.

Bollinger's analysis focuses on the behavior of Bitcoin's price in relation to the Bollinger Bands, a popular technical indicator used to measure market volatility. Since April, Bitcoin has experienced three distinct "pushes" higher, each marked by a brief top and consolidation period. Each push also saw the price reaching the upper Bollinger Band. However, the inability of Bitcoin to hold onto all-time highs and continue its ascent has led Bollinger to believe that the local uptrend may be over.

In a recent post on X, Bollinger stated that the "Three Pushes [are] now confirmed," indicating that the prior trend has likely ended. He further explained that this rejection at the upper Bollinger Band "could usher in a reversal or a consolidation" phase for Bitcoin.

The Bollinger Bands consist of a middle band, which is a simple moving average of the price, and two outer bands that are calculated based on the standard deviation of the price. These bands widen and narrow depending on market volatility. A narrowing of the bands often precedes periods of increased volatility.

Bitcoin has been facing headwinds in June, with sellers placing significant ask liquidity between the current all-time highs and $120,000. Geopolitical tensions, particularly those involving the Middle East and US-China trade relations, have also added complexity to the market.

Other analysts have noted that Bitcoin faces multiple hurdles to price discovery after its gains in May. These include resistance at the upper Bollinger Band and potential impacts from global events. One trading firm noted that tensions have returned to levels last seen in April, further complicating the outlook for Bitcoin bulls.

Despite the potential for a trend reversal, Bitcoin has shown resilience, maintaining a price level around $110,000. However, the failure to break through resistance levels and the signals from the Bollinger Bands suggest that caution may be warranted.