The crypto trading landscape has become tumultuous due to President Donald Trump’s erratic announcements regarding tariffs. In times like these, traders often tune out the surrounding chaos and focus on the price movements—analyzing charts, identifying the path of least resistance, and following that direction.
For bitcoin (BTC), the indicators are looking positive, with short-term price charts revealing a pattern that diverges from the previous peak during January-February, where prices surpassed $109K.
This pattern is known as a double bottom, characterized by two successive troughs that hit similar price points, indicating that the downtrend is losing steam, alongside a trendline connecting the peaks between these two troughs. A breakout occurs when the price moves above this trendline—referred to as the neckline—signaling a bullish change in the market.
BTC formed a double bottom near $74,600 between April 7 and April 9, separated by a brief rebound that brought prices close to $80,800. On Wednesday, the price climbed above the neckline level, confirming the double-bottom breakout.
According to technical analysis, one can estimate the potential upside by adding the distance between the troughs to the neckline, suggesting that BTC could rally towards $87,000. At the time of writing, bitcoin prices hovered around $82,000.
Further supporting the bullish argument is the formation of a “bullish outside day” candle on the daily chart, which hints at a likely trend reversal upward. This candle’s distinct shape features a green body and wicks that completely envelop the previous day’s bearish price action. This setup signifies a strong commitment from buyers to reclaim control, indicating an upswing in positive market sentiment.
However, these bullish signals could be negated if the price drops back below $75,000.
XRP and DOGE show promise for continued recovery
XRP, a cryptocurrency focused on payments, and DOGE, the prominent memecoin by market size, both experienced significant surges of 14.3% and 12.7%, respectively, on Wednesday, fueled by bitcoin’s renewed upward momentum encouraging greater risk-taking within the broader crypto market.
Both cryptocurrencies established bullish outside day candles, signaling that the bulls are making strides to regain market dominance following a prolonged selling phase. This pattern suggests the potential for sustained gains in the near term.
