Impact of Hammer in Downtrend – BTC

A Hammer candlestick in a Bitcoin downtrend signals a potential bullish reversal:

Shows strong buying pressure after sellers pushed price lower.

Indicates bear exhaustion and possible shift to upward momentum.

Stronger signal if it forms near a support zone or with bullish divergence on RSI/MACD.

Needs confirmation with a bullish candle next day for reliable entry.

It’s often used by traders to time trend reversals or bounce trades in BTC.