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A Bitcoin price pattern with a high hit rate formed on the daily chart. Are new BTC all-time highs incoming?
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Bitcoin price pattern with 78% accuracy emerges, pointing to new BTC highs
Market Analysis
COINTELEGRAPH IN YOUR SOCIAL FEED
Key takeaways:
Since 2021, 78% of Bitcoin's bullish engulfing patterns have led to new local highs, especially within broader uptrends.
Bitcoin has absorbed over $544 billion in capital since November 2022, pushing the realized market cap to $944 billion.
Bitcoin
$107,109
closed Monday with a strong 4.34% daily gain, forming a bullish engulfing candlestick that fully reversed the previous two days of bearish price action. This pattern, coupled with BTC maintaining support above the $105,000 level for two consecutive days, signals a potential shift in market structure and adds weight to the ongoing recovery.
Cryptocurrencies, Bitcoin Price, Markets, Price Analysis, Market Analysis
Bitcoin bullish engulfing pattern analysis on the daily chart. Source: Cointelegraph/TradingView
Despite the bullish technical setup, market sentiment remains divided, prompting a deeper examination. To assess the reliability of this pattern, Cointelegraph did a comparative analysis of all bullish engulfing formations on BTC’s daily chart since 2021.
While the bullish engulfing pattern served as the primary signal, additional criteria were used to validate its strength:
The engulfing candle must encompass at least the previous two candles.
The pattern should emerge at the tail end of a corrective phase, indicating a potential trend reversal.
In the sessions following the engulfing pattern, a clear break of structure should be observed to confirm bullish momentum.
Since January 2021, Bitcoin has recorded 19 instances of the bullish engulfing pattern meeting the defined confirmation criteria. Out of these, 15 led to the formation of new local highs in the following days or weeks, translating to a historical success
