What Is Double Bottom?
A double bottom is a bullish reversal pattern that forms when price tests the same support level twice and holds, creating a "W" shape on the chart. The pattern signals that sellers tried twice to push price below support and failed, indicating the selling pressure is exhausted and a reversal is likely.
How Double Bottom Works
The confirmation point (neckline) is the high between the two bottoms. The pattern is confirmed when price breaks above the neckline with volume. The measured move target is the distance from the bottoms to the neckline, projected upward from the breakout point. The second bottom should ideally form with lower volume and/or bullish RSI divergence.
Why It Matters for Traders
Double bottoms are among the most reliable reversal patterns in crypto because they represent a clear demand zone that has been tested and validated. Trading the pattern involves entering on the neckline break (aggressive) or on a pullback to the neckline after the break (conservative). The stop-loss goes below the double bottom lows — a clear invalidation level.
