A "double bottom" is a technical analysis pattern that indicates a potential reversal in a downtrend. It occurs when the price of an asset, such as a stock or cryptocurrency, hits a low point twice, with a moderate rise in between. This pattern suggests that the asset has found strong support at the lower price level, making it a bullish signal for traders. Traders often look for confirmation of a double bottom when the price breaks above the peak between the two lows. This breakout can signal a shift in market sentiment, leading to increased buying activity. The pattern is commonly used in the analysis of various financial instruments, including stocks, forex, and commodities.