Bitcoin Price's Potential Double Bottom Could Trigger BTC Rally To $30,000 Despite 'Extreme Fear'

Bitcoin market selling pressure not as bad as it was during the Terra and Three Arrows crises Capital.

Market analysis

The price of bitcoin (BTC) could soar more than 50% in September, a month otherwise considered worrisome for the cryptocurrency due to its historically low returns.

BTC price double bottom then $30,000?

The contradictory upside signal comes from a potential double-bottom pattern on the longer-term charts of Bitcoin against the US Dollar. Double bottoms are bullish reversal patterns that look like the letter W due to two bottoms and a change in direction from downside to upside.

Double -bottom illustrated. Source: ThinkMarkets

Bitcoin's decline below $20,000 in July, followed by a strong recovery towards $25,000 and a subsequent return to the $20,000 level in August, partly confirms the double bottom scenario. The cryptocurrency would complete the pattern after rebounding towards $25,000.

A W-shaped price move in an ideal scenario could be followed by another sharp upward move – a double bottom breakout.

Meanwhile, the bullish target of a double bottom is found after measuring the distance between the pattern peak (neckline) and the lowest levels and adding the result to the breakout point, as shown here -below. In other words, a potential price increase of 50%.

BTC / Daily USD price chart with a double bottom breakout setup. Source: Trading View