Is Bitcoin Forming a Bottom? Price Signals Bullish Three Drives Pattern at $75K

BTC price signals potential bullish three drives for a reversal

Bitcoin's price is currently testing the $75,000–$78,000 support area, potentially forming a three-drive pattern. This could indicate that a structural bottom might be developing after weeks of significant downward pressure.

Despite the recent price action of Bitcoin, which has displayed broad weakness following a substantial downward trend that wiped out several major structural levels, a notable shift is starting to emerge. The market is still under considerable bearish pressure; however, the formation of a potential three-drive pattern—a rare but high-probability reversal signal—could be developing as Bitcoin nears crucial support. This comes amid November's losses where over $3.5 billion was drawn from Bitcoin ETFs, raising concerns about the possibility of further downside.

Key Technical Insights on Bitcoin's Price

Bitcoin price signals bullish three drives pattern at $75k: Is a bottom forming? - 1 BTCUSDT (1D) Chart, Source: TradingView

In recent weeks, Bitcoin has been on a continued downtrend, breaking below several key market structure levels. The trend has been characterized by a series of lower highs and lower lows, indicating strong bearish momentum. The breakdown below significant points of control and the value area low of the larger high-time-frame range highlights the intensity of recent sell-side activity.

However, Bitcoin seems to be searching for equilibrium near one of its most critical remaining support areas. The combination of weekly support at $78,000 and the deeper swing low around $75,000 creates a stabilizing zone. This area is displaying early signs of a developing three-drive pattern, a structure often observed during significant turning points in Bitcoin's history.

A three-drive pattern is a high-probability harmonic formation that signals potential reversal. It consists of three symmetrical downward movements, or “drives,” separated by two corrective rallies, each aligning with Fibonacci ratios. The current Bitcoin chart aligns with several of these criteria, as the first two drives have already formed and the price is positioning itself for a potential third drive.

If Bitcoin can achieve a third drive into the $75,000–$78,000 range and subsequently reclaim this level with strong bullish momentum, it would enhance the likelihood of a structural bottom forming. Historically, when Bitcoin completes three-drive formations, it often triggers a significant upward move towards the upper limits of the range.

It’s essential to keep in mind that the overall market structure remains bearish until a higher low and structural shift are confirmed. Nevertheless, the emerging harmonic pattern is one of the few positive indicators in Bitcoin’s current situation, especially as Texas progresses with its state-backed Bitcoin reserve via an investment managed by BlackRock, which adds a considerable macro factor to the broader narrative.

Future Price Action Expectations

Should Bitcoin confirm the third drive and reclaim the $78,000 region with strong momentum, it may signal a significant market bottom. Conversely, failure to maintain this support cluster would invalidate the pattern and open the possibility for further downward movement.