The news cycle has turned chaotic for crypto traders, courtesy of President Donald Trump’s back-and-forth tariffs announcement. In such situations, traders tend to ignore the noise and follow the tape – monitor the price chart, identify the path of least resistance and follow the same.
In case of bitcoin (BTC), the tape has turned bullish, with short-duration price charts flashing a pattern opposite of the one that characterized the January-February price peak above $109K.
We are talking about the double bottom pattern comprising two consecutive troughs with lows at about the same price, representing downtrend exhaustion, and a trendline drawn through the high point between the two troughs. A move above the trendline, also called the neckline, confirms a breakout and a bullish shift in the market trend.
BTC put in a double bottom at around $74,600 between April 7 and April 9, separated by a temporary recovery (high point) to nearly $80,800. On Wednesday, prices rose past that neckline level, confirming the double-bottom breakout.
Technical analysis theory suggests adding the gap between troughs and the neckline to the breakout point to gauge the potential upside move, which suggests scope for a BTC price rally to $87,000. As of writing, bitcoin changed hands at $82,000.
Supporting the bull case is the appearance of a “bullish outside day” candle on the daily chart, suggesting a trend reversal higher. The candle gets its name from its distinctive shape, featuring a green body and wicks that entirely engulf the negative price action of the preceding day. This pattern indicates a strong effort by buyers to reassert control, reflecting renewed bullish sentiment in the market.
These bullish signals risk invalidation in case of a renewed move below $75,000.
Payments-focused cryptocurrency XRP and the leading memecoin by market value, DOGE, surged by 14.3% and 12.7% on Wednesday, respectively, as a renewed uptick in BTC encouraged risk-taking across the broader crypto market.
Both cryptocurrencies formed bullish outside day candles, signaling the bulls’ efforts to regain market control after an extended sell-off. The pattern suggests potential for continued gains in the short-term.
