What Are Double Top and Double Bottom Patterns & How Does It Work?

Cryptocurrency retail traders have borrowed the entire arsenal of technical analysis tools used in traditional markets, so they don’t have to reinvent the wheel. Even though the crypto market is still emerging and thus highly volatile, the prices are behaving based on the same old principles that relate to our intrinsic nature. Above all, the double top and double bottom is clearly a must-know for every trader. 

The double bottom and top can accurately illustrate a reversal in market direction reversal, and it’s not a surprise they remain popular in all markets.

As an introduction, the double bottom pattern (W-shape) is a bullish reversal formation on the candlestick chart, though it can also be visible on the bar and even line charts. It is also conveyed as a mirror of the double top pattern (M-shape), which is a bearish reversal pattern. 

Of course, these patterns can also relate to the traders’ psychology, and it’s best suited for analyzing the intermediate to longer-term view of a market. But the best part is, they work exceptionally well for cryptocurrencies like Bitcoin and altcoins.