MicroStrategy’s Double Bottom Pattern Suggests Potential Bullish Turn
On March 18, 2025, MicroStrategy (MSTR) appears to be forming a bullish technical pattern, suggesting a possible reversal after a prolonged downtrend, providing a sharp contrast to the bearish signals observed in Bitcoin’s (BTC) price action earlier this year.
The pattern forming on MicroStrategy’s chart is a double bottom, which occurs when a stock hits two similar low points in price, signaling that the downward trend may be losing steam. This formation is confirmed when the price breaks through a resistance trendline, known as the neckline, that connects the peak between the two troughs. Once the price surpasses this neckline, it typically indicates a shift from bearish to bullish momentum.
In MSTR’s case, the pattern is especially significant as it follows a substantial price drop. The gap between the troughs and the neckline is over 35%, well beyond the typical 10% found in most double bottom patterns. This formation started at around $230 in late February, with the neckline resistance identified at $320.94, which was reached during the recovery in early March.
Should MSTR break above this resistance level, it would confirm the breakout, signaling a potential bull run. Technical analysts often calculate the projected upside by adding the gap between the troughs and the neckline to the breakout point. In this case, the target could be as high as $410.
Additionally, the price action has broken through the downtrend line that had defined its decline from the November high of $543, further validating the potential for a bullish reversal.
The evolving double bottom pattern in MicroStrategy’s chart stands in contrast to the double top formation seen in Bitcoin earlier this year, which signaled a potential price drop to $75,000. Bitcoin’s double top breakdown occurred on February 24, leading to a decline below $91,000 and further sliding to a low of $76,800 last week. The Nasdaq also saw a similar breakdown in early March.
Double bottoms and double tops are considered reliable indicators in technical analysis, with breakouts and breakdowns often leading to sustained price movements in the direction of the reversal.
As the largest publicly traded holder of Bitcoin, with 499,096 BTC valued at approximately $41.5 billion, MicroStrategy’s stock movements remain a key indicator for both traditional investors and cryptocurrency enthusiasts.
