Technical analysis by Royalfxsignal about Symbol BTC: Buy recommendation (5/6/2025)

BTC/USD – Double Bottom Reversal Pattern Forming a Bullish SetupChart Overview:Timeframe: 45-minute chartInstrument: Bitcoin vs US Dollar (BTC/USD)Platform: Bitstamp via TradingViewDate: May 6, 2025🔍 Technical Analysis Breakdown1. Trend Context – Prior DowntrendThe price had been in a sustained downtrend, characterized by a series of lower highs and lower lows, until it found major support near the 93,223 level. This level acted as a demand zone, halting further declines and setting the stage for a reversal.2. Reversal Formation – Double Bottom PatternBottom 1: The first significant low was printed at the Support Zone near 93,223, marked with a strong bearish rejection.Interim Bounce: The price bounced back to test a resistance area around 95,575, but failed to break higher.Bottom 2: Price then revisited the same support zone (forming Bottom 2), but this time with diminishing bearish momentum, signaling potential exhaustion of sellers.Neckline (Resistance): The interim swing high between the two bottoms formed a neckline at 95,575, which is the key breakout level for confirming this bullish reversal.✔️ Double Bottom = A bullish reversal signal suggesting a shift from downtrend to uptrend.3. Key Technical LevelsTypePrice LevelSupport (Bottom)93,223Resistance (Neckline)95,575Target (TP)96,245Stop Loss (SL)Below 93,2234. Trade Setup (Based on Double Bottom Pattern)Entry: On confirmed breakout above 95,575Ideally with a strong bullish candle close and volume confirmationRetest of the neckline can provide a secondary entryTake Profit (TP): 96,245, calculated using the measured move technique:Distance from the support to the neckline added above the breakoutStop Loss (SL): Below 93,223, just under the second bottomProtects against false breakouts or pattern failure5. Projected Price Path (Forecast Arrows)The chart visually maps out a potential bullish path:Price breaks neckline at 95,575Pullback to retest neckline (bullish confirmation)Continuation to target zone at 96,245Potential short-term consolidations before reaching the target🧠 Technical Insight:Volume Analysis (if added): A rise in volume on the breakout would confirm bullish strength.Market Psychology: Sellers attempted to push lower twice but were rejected both times at the same support level, indicating the dominance of buyers and a shift in sentiment.✅ Trading Bias: BullishThis is a high-probability bullish reversal setup backed by classic price action. The clearly defined risk-to-reward ratio makes it attractive for swing or intraday traders.💡 Professional Tip:Always monitor momentum indicators (like RSI or MACD) for bullish divergence or confirmation signals, especially on the second bottom—this can strengthen the setup reliability.