Bitcoin clawed back losses on Monday, rising to nearly $110,000 after US President Donald Trumps unexpected EU tariff announcement rattled markets over the weekend.

A key technical pattern has now emerged, which could potentially hint at the next major move in the cryptocurrencys ongoing price trend.

Bitcoins Double Bottom Formation

Bitcoin may be on track to reach $112,000 following the activation of a classic double bottom pattern, according to CryptoQuants report.

The pattern—often viewed as a strong bullish reversal signal—formed around key support levels at $106,800 on May 23 and $106,600 on May 25, with a neckline at $109,000. The price has since broken above the neckline and is currently trading above $109,400.

CryptoQuant noted that this breakout occurred with strong trading volume, thereby indicating growing bullish momentum. If the breakout level continues to hold as support, analysts believe a move toward the patterns projected target of $112,000 is likely.

Double bottoms are where the market says: Weve 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.

As Bitcoin holds firm above key technical levels, gauging the on-chain metrics reveals a quiet tug-of-war unfolding beneath the surface.

Bullish Continuation Likely

Bitcoins recent price action reveals a growing divergence between retail behavior and whale activity, as per the latest on-chain analysis. Despite prices grinding higher, exchange netflows remain negative, which implies that more BTC is leaving exchanges than entering.

At the same time, the Taker Buy/Sell Ratio has dropped below 1.0. This figure signals that aggressive selling continues, which is likely driven by retail investors de-risking. However, the absence of large inflow spikes suggests theres no widespread panic or major distribution.

Analysts have interpreted this as a potential stealth accumulation phase by smart money. If prices hold amid rising sell pressure, a short squeeze and bullish continuation could follow.