The anatomy that has to be present before the label applies — structure, the trigger line, and where the measured-move target comes from.
Double bottom — two defenses, neckline break & measured move
What is a double bottom?
A double bottom is the bullish mirror of the double top: price falls to a low, bounces, returns to roughly the same low — and holds again. The two troughs with a peak between them draw a 'W'. The peak's high is the neckline, and a close above it completes the reversal.
Two successful defenses of the same level is evidence of real demand. The second test is the crucial one: sellers had every chance to break the level and could not. Shorts pressing into that second low are forced to cover when the neckline breaks, fueling the breakout.
In crypto, double bottoms frequently form after capitulation events — the first low is panic, the second is the calmer retest that proves the panic price was actually demand.
How it forms, phase by phase
1
First low
A downtrend makes a new low and bounces — often a violent, high-volume flush followed by a sharp snap-back.
2
The peak
The bounce stalls and sets the neckline. In a still-bearish market this looks like every other dead-cat bounce.
3
Second low
Price returns to the first low's zone and holds, typically on much lighter volume — the sellers who drove the first flush simply aren't there anymore.
4
Neckline break
Price closes above the peak between the lows, ideally on expanding volume. The 'W' completes and the lower-low downtrend sequence is officially broken.
How traders trade it
1Confirmation is the close above the neckline. Buying the second low early offers a better price but carries the real risk that the 'support' fails on the third test.
2Watch for the volume signature: heavy volume on the first low, light volume on the second, expansion on the breakout. That sequence is accumulation in miniature.
3Project the pattern height above the neckline for a target; stop goes below the second low.
4RSI bullish divergence between the two lows — price equal or lower, RSI clearly higher — is one of the strongest confirmations this pattern can get.
The target calculation
Target = neckline + (neckline − bottom). Measure the height from the lows to the peak between them, then project it above the breakout.
Worked example
1.Solana bottoms twice at $110 with the bounce peak (neckline) at $128.
2.Pattern height: $128 − $110 = $18.
3.On a close above $128, the measured target is $128 + $18 = $146.
4.A stop below the second low at $108 risks $20 to make $18 from the breakout — better entries on the neckline retest improve that ratio substantially.
Double Bottom: key facts
The second low often undercuts the first slightly — a stop-run below obvious support that immediately reverses ('spring' or 'bear trap') is a strong variant, not a failure.
Lighter volume on the second low than the first is the key internal sign that selling pressure is exhausted.
The pattern completes only on the neckline break — two equal lows alone are just a range.
Weeks between the two lows beats hours: more time means more genuine accumulation.
Double bottoms that form near long-term moving averages or prior macro lows compound multiple support layers into one level.
What it doesn't tell you
In a strong downtrend, 'support' holds twice and breaks on the third test often enough that buying every W-shape is a losing strategy. The pattern needs the neckline break — and even then, it projects a measured move, not a new bull market. Treat it as a reversal of the immediate downtrend, with everything beyond the target needing fresh evidence.
Double Bottom FAQ
Is a double bottom bullish?
Yes — once complete. Two defenses of the same low show demand, but the pattern only confirms when price closes above the neckline (the bounce high between the lows). Before that, it is still technically a downtrend.
What if the second low is lower than the first?
A slight undercut that quickly reverses is actually a well-regarded variant — it sweeps the stop-losses resting under the first low and traps breakdown sellers, who then fuel the reversal. A deep, sustained break below the first low, however, invalidates the pattern.
How long does a double bottom take to form?
On a daily chart, anywhere from a couple of weeks to a few months between the two lows. Generally, the longer the base, the more significant the eventual breakout — a few hours between lows on a minute chart carries little information.
Test yourself
0/3 answered
1. The second low slightly undercuts the first, sweeps stops, and immediately reverses. What is that?
2. Bottoms at $110, bounce peak at $128. What is the measured target after the neckline breaks?
3. What is the textbook volume signature of a valid double bottom?
Keep learning
Patterns that trade alongside the double bottom — same discipline, different shape.
Disclaimer: This page is educational and does not constitute financial advice. Chart patterns describe historical tendencies, not certainties. Cryptocurrency markets are volatile — always do your own research and never invest more than you can afford to lose.
