Bitcoin Double Bottom Pattern Explained: My Trading Plan for the Next Move

The Bitcoin double bottom is one of the most-watched patterns on the chart right now, and traders are waiting to see if it confirms. Bitcoin is repeating a familiar structure from earlier this year — a bearish divergence, followed by a crash, and now potentially a recovery setup forming around key support zones. Here’s my full trading breakdown and the plan I’m following.

Bitcoin Weekly Chart and Market Momentum

On the weekly Bitcoin chart, the super trend indicator remains green, confirming the broader bull market. However, we’ve also reconfirmed a bearish divergence, showing that bullish momentum is weakening even though the long-term trend is still intact.

The market isn’t signaling a full-blown bear phase yet, but it is slowing down. This usually means we could see a sideways consolidation before any major recovery.

Daily Chart and Repeating Price Pattern

The Bitcoin double bottom setup resembles the pattern from December 2024 — bearish divergence, a correction, and then a W-shaped recovery before a breakout.

Back then, Bitcoin rallied from the pattern to a new all-time high before facing rejection. This time, the structure looks very similar, though an exact repeat is unlikely. We could still consolidate for a week or two before confirming a new breakout.

Key Support Levels

Right now, strong support sits between $107,000 and $109,000, with the most critical level at $108,000. This zone has been tested multiple times, holding firm even through recent volatility.

As long as Bitcoin stays above this range, the structure of the double bottom remains valid. A clean break below $107,000, however, could invalidate the pattern and lead to further downside.

Bitcoin Liquidation Heat Map and Resistance Levels

The Bitcoin trading plan focuses on short-term liquidity clusters forming on the heat map. The key resistance zone is between $116,000 and $117,000, where significant liquidity has built up.

If Bitcoin pushes to this level, we could see stop-hunt wicks or a rejection before another attempt higher. A confirmed breakout above $116,000 would activate the bullish double bottom target at around $121,000 — a 4–5% move from breakout levels.

Until that happens, the breakout isn’t confirmed, and I remain cautious.

Ethereum and Altcoin Market Outlook

Ethereum continues to hold above $3,900–$4,100, a strong historical support zone. A daily bullish divergence is now confirmed, suggesting short-term upside or at least sideways stability for the next couple of weeks.

This means Ethereum and top altcoins could see relief rallies, but not a full trend reversal yet.

Solana, for example, has broken back above the $190–$200 zone, retested it, and is now holding it as support. This could set up a short-term bullish run toward $217–$230 if Bitcoin maintains stability.

My Trading Plan

Here’s my current Bitcoin trading plan and setup:

1. No leverage longs until Bitcoin confirms a breakout above $116,000.
2. Scalping opportunities between $108,000 support and $116,000 resistance zones using short-term range trades.
3. Funding rate arbitrage: Recently, I closed a Solana-based delta-neutral trade that earned $10,000 in profit over three days by exploiting funding rate differences across exchanges. These strategies work regardless of price direction.

If Bitcoin confirms the double bottom breakout, my target will be $121,000 short-term, followed by $126,000 medium-term.

Altcoin Watch: XRP and Chainlink

XRP continues to form lower highs and lower lows, showing weakness on the weekly chart. Resistance remains between $2.60 and $2.70, with support near $2.30–$2.40. If it fails to hold, $2.00 becomes the next key zone.

Chainlink mirrors XRP’s structure — short-term bounces are possible, but the broader trend is bearish until it breaks above $20. Below that, supports sit around $17.30 and $15.60.

Outlook and Final Thoughts on the Bitcoin Double Bottom

Bitcoin is still in a bull market, but losing momentum. The Bitcoin double bottom pattern could provide the next big move — if it confirms.

Expect sideways trading and volatility over the next week or two. A breakout above $116,000 could open the door to a bullish run toward $121,000, while a failure below $107,000 would shift the short-term outlook bearish.

I’ll continue to trade within this range while monitoring funding rate spreads for risk-free arbitrage opportunities.

For live Bitcoin data and market updates, visit CoinMarketCap’s Bitcoin page.