Understand with one image the confirmation and entry of the double bottom (w) bottom.

Seller exhaustion and buyer dominance establishment

The double bottom pattern is a bullish reversal pattern that appears at the end of a downtrend. It consists of two roughly equal low points and a middle high point (the neckline), resembling the letter "W".

The first bottom is in a downward trend, with bears normally creating new lows, followed by a natural rebound (dead cat bounce), forming an intermediate high.

The second bottom: bears are trying to restore the downtrend again, pushing the price down to near the previous low. The key is: the price has not been able to effectively break through the previous low, indicating that the selling pressure is exhausted, or there is strong institutional buying support here.

Breakthrough: Bulls have sensed the weakness of bears and launched a counterattack, breaking through the intermediate high point (neckline). At this point, the market structure has shifted from a downtrend to an uptrend.

Prerequisite: There must be a clear downward trend before the formation appears. A "W" in a sideways market is meaningless.

Low point requirements: The heights of the two low points should be roughly the same, with an allowable error of 3%-5%. Usually, the second low point is slightly higher than the first low point for better results.

Neckline confirmation: The horizontal line drawn from the high point of the middle rebound is the neckline.
Transaction Volume Verification:

The trading volume at the lower end is usually large (panic selling).

The trading volume at the bottom right usually shrinks (selling pressure exhausted).

When breaking through the neckline, it must be accompanied by increased volume (bulls entering with real money) $btc