MicroStrategy's Price Chart Shows Bullish Double Bottom Pattern

According to CoinDesk, a bullish technical analysis pattern is emerging on MicroStrategy's (MSTR) price chart, contrasting with the recent bearish pattern seen in bitcoin (BTC). The pattern, known as a double bottom, consists of two consecutive troughs at approximately the same price, indicating a potential exhaustion of the downtrend. A trendline, referred to as a neckline, is drawn through the high point between these troughs. A breakout beyond this trendline confirms a shift from a bearish to a bullish trend. This pattern is particularly significant when it appears after a substantial decline, as is the case with MicroStrategy. The gap between the troughs and the high point is over 35%, surpassing the 10% threshold typically required by technical analysis theory to confirm a breakout. The double bottom on MicroStrategy's chart has been forming around $230 since late February, with the neckline resistance marked by the early March recovery to $320.94. A price movement through this resistance would validate the double-bottom breakout, signaling a renewed bullish trend. Technical analysts often calculate the potential upside by adding the gap between the troughs and the neckline to the breakout point, which suggests a rally to $410 in this scenario. Additionally, the share price has surpassed the downtrend line that characterized the decline from the November high of $543. The developing double bottom on MicroStrategy's chart contrasts with BTC's double top pattern from earlier this year, which indicated a price sell-off to $75,000. BTC's double top breakdown occurred on February 24, with prices dropping below $91,000, suggesting a bearish trend reversal. The decline accelerated in the following days, with prices reaching as low as $76,800 last week. A similar breakdown was observed in Wall Street's tech-heavy Nasdaq index earlier this month. Double bottoms and double tops are known for their low failure rates, as noted in CMT books, meaning that breakouts and breakdowns typically lead to extended price rallies or sell-offs. MicroStrategy, the world's largest publicly listed bitcoin holder, possesses a substantial coin stash of 499,096 BTC, valued at $41.5 billion.