Technical Analysis Suggests MicroStrategy’s Double Bottom May Signal a Fresh Bullish Trend

MicroStrategy’s Double Bottom Pattern Suggests Bullish Trend Ahead

On March 18, 2025, a bullish technical pattern is emerging on the price chart of MicroStrategy (MSTR), in contrast to the bearish signals recently observed in Bitcoin’s (BTC) price action.

The pattern forming on MSTR’s chart is a double bottom, a technical indicator consisting of two troughs at similar price levels, typically signaling the end of a downtrend. A trendline, known as the neckline, connects the peak between these two troughs. A breakout above this neckline confirms a reversal from a bearish to a bullish trend.

For MSTR, this pattern is particularly significant as it has developed after a considerable price decline, with the distance between the troughs and the peak being over 35%, far exceeding the typical 10% seen in many double bottom formations. The double bottom started forming around $230 in late February, with the neckline resistance identified at the early March recovery level of $320.94.

If MSTR’s price breaks above this resistance, it would validate the breakout, potentially signaling the start of a fresh bull run. Technical analysts often project an upside move by adding the distance between the troughs and the neckline to the breakout point, indicating that MSTR could see a price target of around $410.

Additionally, the stock has broken through the downtrend line that defined its decline from the November high of $543, further supporting the case for a bullish reversal.

This emerging double bottom on MSTR’s chart contrasts with the double top pattern observed in Bitcoin earlier this year, which warned of a price correction to $75,000. Bitcoin’s double top breakdown on February 24 saw prices drop below $91,000, continuing downward to a low of $76,800 last week. A similar breakdown was seen in the Nasdaq index at the start of March.

Double bottoms and double tops are known for their high reliability, with breakouts and breakdowns typically leading to significant price movements in the direction of the trend reversal.

MicroStrategy, the largest publicly traded holder of Bitcoin, with 499,096 BTC valued at approximately $41.5 billion, remains a key player in both the stock and cryptocurrency markets, and its price movements are closely watched by investors.