Bitcoin price pattern with 78% accuracy emerges, pointing to new BTC highs

1 month ago

Key takeaways:

Since 2021, 78% of Bitcoin's bullish engulfing patterns person led to caller section highs, particularly wrong broader uptrends.
Bitcoin has absorbed implicit $544 cardinal successful superior since November 2022, pushing the realized marketplace headdress to $944 billion.

Bitcoin (BTC) closed Monday with a beardown 4.34% regular gain, forming a bullish engulfing candlestick that afloat reversed the erstwhile 2 days of bearish terms action. This pattern, coupled with BTC maintaining enactment supra the $105,000 level for 2 consecutive days, signals a imaginable displacement successful marketplace operation and adds value to the ongoing recovery.

Cryptocurrencies, Bitcoin Price, Markets, Price Analysis, Market Analysis

Despite the bullish method setup, marketplace sentiment remains divided, prompting a deeper examination. To measure the reliability of this pattern, Cointelegraph did a comparative investigation of each bullish engulfing formations connected BTC’s regular illustration since 2021.

While the bullish engulfing signifier served arsenic the superior signal, further criteria were utilized to validate its strength:

The engulfing candle indispensable encompass astatine slightest the erstwhile 2 candles.
The signifier should look astatine the process extremity of a corrective phase, indicating a imaginable inclination reversal.
In the sessions pursuing the engulfing pattern, a wide interruption of operation should beryllium observed to corroborate bullish momentum.

Since January 2021, Bitcoin has recorded 19 instances of the bullish engulfing signifier gathering the defined confirmation criteria. Out of these, 15 led to the enactment of caller section highs successful the pursuing days oregon weeks, translating to a humanities occurrence complaint of astir 78%.

Notably, each 19 instances occurred wrong a broader bull marketplace context. In 2024 and 2025, determination were lone 2 failed signals, successful May 2024 and March 2025, wherever the signifier did not pb to caller terms highs.

Despite these exceptions, the prevailing bull marketplace operation suggests a statistically favorable situation for continuation, with Bitcoin presently positioned to marque caller highs earlier perchance retesting the $100,000 level.

For broader context, the aforesaid signifier was besides observed during the 2022 carnivore market, wherever 4 occurrences were identified. None of these led to caller highs, with 3 instances clustered wrong February 2022.

This opposition underscores the value of inclination context, arsenic the pattern’s effectiveness has historically been constricted successful downtrends, further reinforcing the higher probability of occurrence during the contiguous bull market.

Bitcoin flashes “undeniably bullish” liquidity conditions

Bitcoin marketplace conditions are flashing a setup not witnessed since precocious 2022. Despite wide panic, BTC bottomed astatine $16,800 and doubled successful 3 months. According to caller information from Swissblock, liquidity levels person returned to those seen successful December 2022, hinting astatine a perchance bullish continuation.

While the macro environment, marketplace participants, and catalysts person changed, 1 cardinal information remains consistent: erstwhile liquidity recovers, BTC terms follows. The existent operation suggests that Bitcoin could beryllium positioning for a akin breakout, arsenic superior flows backmost into the system.

The relation of liquidity has evolved importantly this cycle, highlighting Bitcoin’s increasing maturity arsenic a macro asset. Since the rhythm debased successful November 2022, Bitcoin has absorbed implicit $544 cardinal successful caller superior inflows, driving its interior web liquidity oregon realized marketplace headdress to an all-time precocious of $944 billion.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

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