If we ignore the candle marked with an arrow in the Bitcoin chart, the candle formation inside the box resembles the "Evening Star" formation.

This formation is generally considered a trend reversal signal and is interpreted as follows:

First Candle (Green) → Strong Uptrend:

Indicates that the market is in a strong uptrend and buyers are in control.

Second Candle (Small Body or Doji) → Indecision:

After the market opens, uncertainty begins. A balance forms between buyers and sellers.

This is the first sign that momentum is weakening and a trend reversal may occur.

Third Candle (Red) → Selling Pressure:

A long red candle indicates that selling pressure has increased in the market and a downtrend has started.

🔎 What does this formation mean?

It signals the end of the uptrend and that selling pressure in the market will increase.

Particularly, if the third candle completely engulfs the previous uptrend candle, this is a stronger bearish signal.

👉 Conclusion: If the volume is also increasing and the third candle closes the body of the previous candles, there is a high probability of a strong trend reversal occurring.