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 – monitoring the price chart, identifying the path of least resistance, and aligning their strategies accordingly.
In the case of Bitcoin (BTC), the tape has shifted bullish. Short-duration price charts are indicating a pattern that contrasts sharply with the one seen at the January-February price peak above $109K.
We are talking about the double bottom pattern, which consists of two consecutive troughs with lows at approximately the same price level. This pattern symbolizes downtrend exhaustion, and it is typically accompanied by a trendline drawn through the high point between the two troughs. A movement above this trendline—or neckline—serves as confirmation of a breakout, signaling a bullish shift in market sentiment.
BTC established a double bottom around $74,600 from April 7 to April 9, punctuated by a brief recovery that peaked at nearly $80,800. On Wednesday, prices surged past this neckline level, effectively confirming the double-bottom breakout.
According to technical analysis theory, one can gauge the potential upside move by adding the gap between the troughs to the neckline to identify possible price targets. This indicates potential for a BTC price rally to $87,000, with Bitcoin currently trading at $82,000.
Bolstering the bullish case is the emergence of a “bullish outside day” candle on the daily chart, indicative of a trend reversal in the upward direction. The candle earns its name from its unique shape—a green body with wicks that completely engulf the negative price action from the previous day. This pattern indicates a strong commitment from buyers to regain control, reflecting fresh bullish sentiment in the market.
However, these signals carry the risk of invalidation if prices dip below $75,000.
XRP and Dogecoin Recovery Shows Promise
Payments-focused cryptocurrency XRP and the leading memecoin by market capitalization, Dogecoin (DOGE), both experienced notable recoveries, surging by 14.3% and 12.7% on Wednesday, respectively. This renewed interest in BTC appears to have encouraged risk-taking across the broader crypto market.
Both cryptocurrencies have formed bullish outside day candles, signalling the bulls’ concerted efforts to reclaim market dominance following an extended sell-off. This pattern suggests that continued gains are plausible in the short term.
As the crypto landscape continues to evolve, traders are advised to remain vigilant and informed, leveraging technical indicators to navigate potential volatility effectively.
