Bitcoin (BTC) May Have Found Its Bottom Just Above $76,000 on March 10

This move has formed a pattern reminiscent of previous bottoming events in recent history.

output: Bitcoin price action suggests that the flagship cryptocurrency may have found its bottom just above $76,000 on March 10, forming a pattern reminiscent of previous bottoming events in recent history.

In this current correction, bitcoin fell 30% from it's all-time high of $109,000 reached on Jan. 20. After hitting a low on March 10, it recorded higher lows on both sides of that date – around $78,000 on Feb. 28 and just above $81,000 on March 31 – forming a triangular bottom.

A similar pattern played out during the yen carry trade unwind in August 2024, when bitcoin bottomed near $49,000 on Aug. 5. Again, higher lows were seen on either side: on July 7 and September 7.

Another instance occurred during the launch of the U.S. spot bitcoin ETFs in January 2024. Bitcoin experienced a 20% correction, hitting a low just below $40,000 on Jan. 23, with higher lows on both sides of that date as well.

"The latest pattern, indicating a shift from lower lows to higher lows and signifying seller exhaustion, resembles bottoming patterns seen in August and early 2024," Omkar Godbole, managing editor of CoinDesk Markets, said.

"There’s reason to consider the possibility of renewed bullish momentum – though, as always, external risks like Trump’s tariffs could disrupt the trend," he added.

The number one question on investors' minds is whether an asset has hit its bottom after being in a sustained downtrend for an extended period of time.

This usually occurs when there are signs of seller exhaustion, which can be identified through price action or technical analysis.

In the case of bitcoin, it appears to be forming a triple bottom, which is a bullish reversal pattern that occurs when an asset experiences three lows at roughly the same price level.

This pattern is often seen at the end of a bear market or a significant sell-off, as sellers are unable to push the asset lower despite attempts to do so.

After hitting a high of $109,000 in January, bitcoin fell sharply to lows of $76,000 in March as a result of the yen carry trade unwinding and heightened macroeconomic uncertainty due to Trump's unexpected tariff announcement on April 1.

However, buyers stepped in around the $76,000 mark, forming a triple bottom as they managed to prevent the asset from falling further on two separate occasions.

The first instance occurred when bitcoin fell to lows of $76,000 on March 10, testing the Fib (61.8) % support level, leading to a rally that saw it test the Fib (50) % resistance at $94,000 on April 7.

After failing to break through the Fib (50) % resistance, bitcoin slid back down to retest the Fib (61.8) % support with lows of $78,000 on February 28.

This move completed the triple bottom pattern, setting the stage for a final attempt to break through the Fib (50) % resistance at $94,000, which was ultimately successful as bitcoin rallied to highs of $81,000 on March 31.

This analysis suggests that the triple bottom pattern has played out completely, setting the stage for a final push higher towards the Fib (38.2) % level at $89,000, which could be reached by mid-April.