Analysis: Bitcoin Holds Above 109K With 112K in Sight

Bitcoin price action is showing signs of strength, and one familiar pattern has caught traders’ attention. According to CryptoQuant’s latest analysis, Bitcoin has printed a textbook double bottom — a signal often linked to trend reversals. The setup points to a possible move toward the $112,000 mark, but traders are urged to stay cautious.

Good to know

• Bitcoin broke above the $109,000 neckline with strong volume.
• Price is hovering around $109,400 after forming a double bottom.
• The target based on the pattern sits around $112,000.

CryptoQuant highlighted that the double bottom pattern formed over several days, with the first low at $106,800 on May 23 and the second dip to $106,600 on May 25. The neckline at $109,000 was breached shortly after, with strong trading volume confirming the breakout. Bitcoin now sits above this level, holding support and signaling growing interest from buyers.

Double bottom formations usually suggest that sellers are losing control. Once buyers step in to defend the second low, the market often shifts direction. CryptoQuant’s analysis notes that, if current momentum continues, a move toward $112,000 is on the table.

Traders Still Urged to Be Cautious

Even though the technical setup looks promising, CryptoQuant reminded users that no pattern is guaranteed. A breakout, even one backed by volume, still requires confirmation over time.

“Double bottoms are where the market says: ‘We’ve sold enough.’ When buyers defend the second bottom, it sends a message: Now it’s our turn. But remember, not every pattern plays out. Know your risk, make your decision,” the analysis stated.

The current price around $109,400 puts Bitcoin in a key decision zone. If the breakout level remains strong as support, bulls may continue pushing higher. If not, the market could fall back into its previous range.

Keep Risk Management in Mind

CryptoQuant added a note of caution for those rushing into the pattern. Traders should treat formations like maps — helpful, but not guarantees. As the analysis says: “Patterns are like maps — they show you the way, but you’re the one driving. Those who move with patience, discipline, and a plan will be the winners.”

At time of writing Bitcoin is trading at $109,711 according to CoinMarketCap data.