A crypto analyst on TradingView, “TradingShot,” believes Bitcoin’s recent price drop has created a “Double Bottom” pattern, potentially setting the stage for a massive price increase to a new all-time high (ATH) of $112,000.
Bitcoin’s Fall and Rise
Bitcoin took a dive below $100,000 earlier this week, partly due to the rise of the AI model DeepSeek. This caused a significant sell-off. However, Bitcoin quickly recovered over half its losses.
TradingShot points out that Bitcoin bounced off two strong support levels, forming a classic “Double Bottom.” This pattern often signals a shift from a downtrend to an uptrend, creating a “W” shape on the price chart. The chart also shows Bitcoin moving within an ascending channel, further suggesting an upward trend. A key support level was the 4-hour 200-Moving Average (4H MA200), which Bitcoin tested for the first time in 12 days. Another support line comes from a “Pivot trend line” – previously a resistance line – that Bitcoin bounced off of, similar to a pattern seen in December which led to a new ATH.
The Road to $112,000?
The analyst highlights the 4H MA50 (shown as a blue line on the chart) as a key resistance level. If Bitcoin breaks through this level, TradingShot predicts a bullish run towards $110,000-$112,000 – a new ATH. This prediction is supported by the Relative Strength Index (RSI), which shows Bitcoin is currently oversold. Historically, when the RSI dips below 30, Bitcoin tends to rebound.
Potential Downsides
However, if Bitcoin fails to break through the 4H MA50, a bearish scenario could unfold. TradingShot suggests Bitcoin might retest the Double Bottom support around $98,000, a level seen in both December and January. A more significant correction could even push the price down to $96,000.
