🧱 2. Chart Pattern: Double Bottom Formation
📌 Description:
A Double Bottom Pattern is a classic trend reversal formation that occurs at the end of a downtrend. It signifies a strong support level and the potential for price to reverse to the upside.
🔽 Key Features Identified:
Two distinct lows (highlighted with orange circles) at nearly the same price level within the Support Zone.
The area between the two lows forms the neckline, which is the resistance that must break for the pattern to confirm.
📊 Interpretation:
Price found significant demand near the 74,000 zone, tested twice.
The neckline, acting as resistance, was broken with strong bullish momentum, confirming the double bottom.
🖼️ 3. Downtrend Channel & Breakout
⛓️ Downward Channel:
Before the reversal, BTC was moving within a falling parallel channel, shown with diagonal trendlines.
Price was respecting the channel boundaries, forming lower highs and lower lows.
💥 Breakout:
The breakout from this channel aligned with the breakout from the double bottom’s neckline.
This is a high-confluence zone — a powerful bullish signal.
🎯 4. Retest and Trade Setup
🔁 Retesting Phase:
After the breakout, the price pulled back toward the broken neckline, a common occurrence in technical setups.
This retest of previous resistance as support adds confirmation and provides a low-risk entry for buyers.
🟢 Entry Zone:
Ideally, entries are placed just above the neckline during the retest, anticipating continuation of the bullish move.
💰 5. Risk Management Setup
🛑 Stop Loss Level:
Positioned at 76,802 — just below the previous support zone and the recent swing low.
This placement allows room for normal market fluctuations while protecting against breakdown risk.
🎯 Target (Take Profit):
Marked at 87,950, aligning with a measured move projection based on:
Height from support to neckline projected upward
Proximity to a previous resistance level
🧠 Professional Trading Insight
This setup reflects textbook bullish structure with multiple layers of technical confluence:
Price Action: Clean double bottom, breakout, and retest.
Structure Shift: Transition from lower lows to higher highs post-breakout.
Risk-Reward: Favorable with a clear invalidation point and logical upside target.
📌 Final Notes for Traders
This setup would be ideal for swing traders or intraday traders looking to capitalize on trend reversals.
Always validate with additional tools like volume spikes, RSI divergence, or moving averages for added conviction.
Discipline and patience are key — enter only upon confirmed retest or bullish engulfing on the retest candle.
📌 Description:
A Double Bottom Pattern is a classic trend reversal formation that occurs at the end of a downtrend. It signifies a strong support level and the potential for price to reverse to the upside.
🔽 Key Features Identified:
Two distinct lows (highlighted with orange circles) at nearly the same price level within the Support Zone.
The area between the two lows forms the neckline, which is the resistance that must break for the pattern to confirm.
📊 Interpretation:
Price found significant demand near the 74,000 zone, tested twice.
The neckline, acting as resistance, was broken with strong bullish momentum, confirming the double bottom.
🖼️ 3. Downtrend Channel & Breakout
⛓️ Downward Channel:
Before the reversal, BTC was moving within a falling parallel channel, shown with diagonal trendlines.
Price was respecting the channel boundaries, forming lower highs and lower lows.
💥 Breakout:
The breakout from this channel aligned with the breakout from the double bottom’s neckline.
This is a high-confluence zone — a powerful bullish signal.
🎯 4. Retest and Trade Setup
🔁 Retesting Phase:
After the breakout, the price pulled back toward the broken neckline, a common occurrence in technical setups.
This retest of previous resistance as support adds confirmation and provides a low-risk entry for buyers.
🟢 Entry Zone:
Ideally, entries are placed just above the neckline during the retest, anticipating continuation of the bullish move.
💰 5. Risk Management Setup
🛑 Stop Loss Level:
Positioned at 76,802 — just below the previous support zone and the recent swing low.
This placement allows room for normal market fluctuations while protecting against breakdown risk.
🎯 Target (Take Profit):
Marked at 87,950, aligning with a measured move projection based on:
Height from support to neckline projected upward
Proximity to a previous resistance level
🧠 Professional Trading Insight
This setup reflects textbook bullish structure with multiple layers of technical confluence:
Price Action: Clean double bottom, breakout, and retest.
Structure Shift: Transition from lower lows to higher highs post-breakout.
Risk-Reward: Favorable with a clear invalidation point and logical upside target.
📌 Final Notes for Traders
This setup would be ideal for swing traders or intraday traders looking to capitalize on trend reversals.
Always validate with additional tools like volume spikes, RSI divergence, or moving averages for added conviction.
Discipline and patience are key — enter only upon confirmed retest or bullish engulfing on the retest candle.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.