The key takeaways
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Since 2021, a majority of bullish patterns engulfing Bitcoin have resulted in new local highs. This is especially true within the context of broader upward trends.
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Bitcoin has consumed over $544 Billion in capital since 2022. The market value is now $944 Billion.
BitcoinBTC() ended Monday with an impressive 4.34% gain. This formed a bullish candlestick, which reversed two consecutive days of price declines. The pattern of BTC holding support at $105,000 for two days in a row, along with the fact that it has maintained this level, indicates a possible shift in the market structure. This adds further weight to the recovery.
Market sentiment is divided even with the bullish set-up. A deeper look at this situation will reveal more. Cointelegraph analyzed all bullish engulfing patterns on BTC’s daily chart from 2021 to assess this pattern’s reliability.
The bullish engulfing patterns was the main signal. However, other criteria were also used to confirm its strength.
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At least the two preceding candles must be included in the candle that engulfs.
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A pattern will appear at the end of an corrective phase and indicate a possible trend reversal.
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A clear structure break should be noted in sessions that follow the engulfing patterns to confirm the bullish momentum.
After January 2021 Bitcoin The pattern of bullish engulfing has been observed 19 times, and each time it met the criteria for confirmation. The bullish engulfing pattern has been confirmed in 19 instances.
All 19 of these instances took place within the context of a bullish market. Only two signals failed in 2024 or 2025. These were the patterns of May 2024, and March 2025.
Bitcoin, despite these exceptions is still in a position to continue its bullish trend, and could potentially test the $100,000 threshold.
Four occurrences of the same pattern were also identified during the 2022 Bear Market. These three clustered instances in February of 2022 did not lead to any new highs.
The pattern has historically had a limited effectiveness in downtrends. This reinforces the fact that the current bull market is more likely to be successful.
Related: Bitcoin price starts ‘normal and healthy’ support test as $108K halts bulls
Bitcoin flashes “undeniably bullish” Liquidity conditions
Bitcoin’s market is displaying a set-up not seen since the end of 2022. BTC, despite widespread panic at the time, reached its lowest point of $16,800 before doubling in just three months. Recent data shows that according to SwissblockLiquidity levels are back to what they were in December 2022. This could indicate a bullish future.
Although the macro-environment, participants in the market, and their catalysts may have changed, a fundamental truth has not: BTC’s price will follow when there is a recovery of liquidity. Bitcoin’s current structure could indicate that it is positioned for a similar break-out as the capital returns to the system.
This cycle has seen a significant change in the role of liquidity, which highlights Bitcoin’s maturing as a global asset. Bitcoin’s internal network liquidity, or its realized market capital, has reached an all-time peak of $944 Billion since the November 2022 cycle low.
Related: Bitcoin analysts say this must happen for BTC price to break $112K
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Source: cointelegraph.com
