Technical analysis by VIPCryptoVault about Symbol BTC on 12/28/2025

Hello traders, Ever saw that textbook double bottom with all rules applied? Price broke the swing high and stayed above, clear entry, stop loss and tp targets. All of a sudden, price reverts and continues the move downwards. But why? its a double bottom for god's sake!! Every guru said its a guaranteed trade. This was not a double bottom. This was "busted double bottom". So what is a busted pattern? -------------------------------------------------------------------------- 🔍 What defines a busted chart pattern? A pattern is considered "busted" when all of the following occur: 1️⃣ Typical price breakout Price closes above resistance or below support, or outside a pattern boundary (e.g., triangle trendline). 2️⃣ Limited follow-through Price travels no more than ~10-15% in the breakout direction. 3️⃣ Failure & reversal Volume and momentum stalls and price reverses 4️⃣ Invalidation close Bearish breakout → price closes back above the top of the pattern Bullish breakout → price closes back below the lowest low of the pattern -------------------------------------------------------------------------- 🔄 Can a single pattern bust more than once? Yes. Patterns can experience: Single (most common), double or triple bust. Price could oscillate for days, weeks or months, repeatedly failing in both directions. Usually that is a clear sign of distribution, accumulation, or liquidity sweeping. -------------------------------------------------------------------------- 🧩 How this fits modern price action? Busted patterns often align with: - Liquidity grabs - False breakouts - Stop-hunt behavior -------------------------------------------------------------------------- 🛠️ How to capitalize on this in our trading? If the normal pattern momentum is fading, wait for failure confirmation - Use the reclaimed level as invalidation - Expect expansion in the opposite direction - Risk is often cleaner than chasing breakouts -------------------------------------------------------------------------- 📌 Examples Busted Head & Shoulders Busted Double Top -------------------------------------------------------------------------- Patterns fail not because they are “wrong.” But because our mindset becomes one-sided. Educational content only. Always manage risk and do your own analysis. This knowledge and concepts are adapted from Thomas Bulkowski’s chart pattern research