MicroStrategy Double Bottom Could Signal Start of New Bullish Trend: Technical Analysis

Recent price action in MSTR is contrary to the pattern of BTC's rally in January, which warned of a sell-off.

Posted by: Omkar Godbole | Edited by: Sheldon Reback Updated: March 18, 2025 19:20 UTC Published: March 18, 2025 09:47 UTC

Key points:

• A bullish double bottom pattern is forming on the MicroStrategy price chart, indicating a possible shift to a bullish trend.
• The price action appears to be the opposite of the double top pattern Bitcoin saw earlier this year.
• Both double bottoms and double tops have low failure rates.

The price chart of MicroStrategy's Bitcoin Holder (MSTR) clearly shows a bullish technical formation, in contrast to what was seen in Bitcoin (BTC), which warned of a recent market decline.

The MicroStrategy double bottom pattern consists of two consecutive troughs at roughly the same price level, believed to represent the exhaustion of a downtrend, and a trend line (called a neckline) drawn through the high between them. A break above the trend line confirms a successful exit or a reversal of the bearish trend to a bullish one.

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This is especially true when the pattern is formed after a significant drop, as in the case of MSTR, and the difference between the minimum and maximum is at least 10%, according to technical analysis theory. In the case of MSTR, this value exceeds 35%.

The chart shows MSTR making a double bottom around $230 since late February, with the neckline defined by the early March recovery to $320.94.

A break of this resistance would confirm the successful completion of the double bottom and signal a resumption of the bullish rally. Technical analysts usually add the gap between the troughs and the neckline to the breakout point to identify a potential move higher, which in this case suggests a rally to $410.

The stock also broke above a downward trend line, reflecting a decline from its November high of $543.

The emerging double bottom on the MSTR price chart looks like a mirror image of the BTC double top. This pattern has been warning of a price drop to $75,000 since the beginning of the year.

BTC's double top breakout occurred on February 24, when prices fell below $91,000, indicating a bearish reversal

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