MicroStrategy’s Double Bottom Pattern Suggests Potential Bullish Reversal
On March 18, 2025, a bullish technical pattern is beginning to take shape on MicroStrategy’s (MSTR) price chart, offering a stark contrast to the bearish warning seen earlier in Bitcoin’s (BTC) price action.
The pattern in question is a double bottom, which consists of two consecutive price troughs at roughly the same level, signaling potential exhaustion of the downtrend. A trendline, known as the neckline, is drawn through the peak between these troughs. A breakout above this neckline confirms a shift from a bearish to a bullish trend.
In MSTR’s case, this pattern is particularly significant after a notable decline, with the distance between the troughs and the high being over 35%, well beyond the 10% threshold often cited in technical analysis. The double bottom formed around $230 since late February, with the neckline resistance identified at the early March recovery to $320.94.
A move past this resistance would confirm the breakout and potentially signal the start of a new bull market. Analysts typically project the potential upside by adding the gap between the troughs and the neckline to the breakout point, suggesting that MSTR could rally to around $410.
Additionally, the stock price has already broken through the downtrend line that defined its decline from the November high of $543, further reinforcing the idea of a reversal.
This developing double bottom on MSTR’s chart mirrors the double top pattern seen in Bitcoin earlier this year, which served as a warning of a price drop to $75,000. Bitcoin’s double top breakdown occurred on February 24, leading to a decline below $91,000, followed by further drops to $76,800 last week. A similar pattern was observed with the Nasdaq tech index in early March.
Double bottoms and tops are known for their reliability, with low failure rates, meaning breakouts and breakdowns often lead to sustained price moves.
As the world’s largest publicly listed holder of Bitcoin, with 499,096 BTC worth approximately $41.5 billion, MicroStrategy’s price movements are closely watched by investors tracking both the company and the broader cryptocurrency market.
