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The Bump-and-Run Reversal Bottom is a bullish reversal pattern and the mirror image of the BARR Top. It features a lead-in downtrend along a trendline, a "bump" where selling accelerates into panic, and a reversal where price recovers back through the trendline.
This pattern captures capitulation bottoms — the moment when panic selling reaches its peak and the market snaps back. The lead-in is the orderly decline, the bump is the capitulation, and the reversal is the recovery.
It's particularly useful in crypto bear markets where capitulation events create sharp V-shaped bottoms after extended downtrends.
The lead-in is the orderly bear trend. Price declines steadily along a trendline as sellers maintain consistent pressure.
The bump is panic. Selling accelerates as capitulation hits — margin calls, forced liquidations, and emotional panic create a sharp drop below the trendline. Volume spikes to extremes.
The reversal occurs when selling exhausts itself. Smart money buys the capitulation, price recovers back to the trendline, and breaks above it. The trapped shorts from the panic bottom cover, fueling the recovery.
Enter long when price breaks back above the lead-in trendline. Aggressive traders can buy the extreme volume spike at the bump low.
Below the bump low. If price breaks this level, the capitulation didn't hold.
The start of the lead-in phase — a full retracement of the decline. Extended target is the high before the lead-in began.
Often excellent — 1:3 or better — due to the deep capitulation providing a clear stop level.
Bump-and-run bottoms mark the end of bear markets. They're the pattern behind "blood in the streets" buying opportunities.
In crypto, look for the bump-and-run bottom after cascading liquidation events. The volume spike at the low is your clue that forced selling has been absorbed.
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