what is the best/supported database for Bitbucket?

I am working to create a plan for installing Bitbucket locally.  What database is support and performs the best?

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You can choose any one of the databases listed in the documentation shared by Quentin. Personally, I would recommend going for the DB best supported in your organization. You need in-house expertise although any listed DB is supported by Atlassian.

From my experience it is Oracle 12c.

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