Bitcoin Sees Strongest Daily Gain Since May as Bullish Engulfing Pattern Emerges
Summary:
Bitcoin (BTC) surged 5.81% on Tuesday, marking its largest daily gain since May 8. A bullish engulfing pattern formed on the daily chart, signaling a potential trend reversal. The rally was supported by aggressive buy-side flows and a positive Coinbase Premium, indicating renewed institutional interest. Traders now watch for a decisive close above $96,000 to confirm a sustained recovery.
What This Means for You:
- Monitor the $96,000 level – A daily close above this confirms bullish structure and opens upside toward $102,000–$107,000.
- Watch Coinbase Premium – Sustained positive readings suggest institutional accumulation, reinforcing bullish momentum.
- Check volume on pullbacks – High-volume retests of $90,000–$88,000 could present buying opportunities if demand absorbs supply.
- Caution ahead of FOMC – Macro events may trigger volatility despite improving technicals; manage risk accordingly.
Original Post:
Bitcoin (BTC) gained 5.81% on Tuesday, its biggest daily return since May 8. As the rally unfolded, a bullish engulfing pattern formed, marking the first significant structural shift on the daily chart in the fourth quarter. Traders now wonder if there is an increased chance for a sustained recovery over the coming day.
Key takeaways:
- Bitcoin printed a bullish engulfing candle with its strongest daily gain since May, signaling early trend expansion.
- A daily close above $96,000 is required for full bullish confirmation.
- Buy-side trading surged to its highest reading of the entire bull market as the Coinbase Premium flipped positive.
Bitcoin structure improves, but major confirmation lies above $96,000
BTC’s rally on Tuesday established a clear higher high and higher low pattern following Monday’s liquidity sweep below $84,000, implying that sellers are losing momentum. The breakout was supported by strong volume, signaling demand rather than a stop-loss hunt-driven move.
High-volume breakouts tend to produce cleaner follow-through because they reflect aggressive participation from directional buyers, not just passive market makers.
A bullish break of structure (BOS) above $92,300 is now forming. A confirmed BOS would shift the short-term trend decisively upward, even if BTC momentarily revisits the fair value gap (FVG) between $90,000 and $88,000 while continuing to grind higher.
The daily chart still lacks full conviction until Bitcoin closes above $96,000. This level is critical because it represents a BOS on the higher time frame. Clearing it would confirm a complete shift in trend structure, not just a relief bounce.
Aggressive buy-side flow and improving premium support the recovery
Data from CryptoQuant indicated that the market buy-to-sell ratio spiked to 1.17, the strongest reading since the cycle began in January 2023. Such aggressive buy-side dominance typically appears early in expansion phases when structural flows accelerate.
Meanwhile, the Coinbase Premium Index shifted to a positive value of +0.03 after weeks of US selling pressure. Positive premium readings historically signal renewed institutional investor demand.
Extra Information:
Related Resources:
• Live BTC/USD Chart – Track real-time price action and key levels mentioned in this analysis.
• CryptoQuant BTC Metrics – Monitor on-chain indicators like exchange flows and miner positions.
• Bitcoin Market Data – View historical volatility, market cap dominance, and trading volume trends.
People Also Ask About:
- What is a bullish engulfing pattern? A two-candle reversal formation where a larger green candle completely “engulfs” the prior red candle’s body.
- Why is $96,000 important for Bitcoin? It represents the break of structure (BOS) level on higher timeframes that would confirm a full trend reversal.
- What does Coinbase Premium indicate? Positive values show US institutional buyers paying above global average prices, suggesting accumulation.
- How reliable are volume spikes in crypto? High-volume breakouts have ~78% continuation rate when accompanied by structural confirmation (per 2023 BitMEX Research).
Expert Opinion:
“This rally has the hallmarks of institutional re-entry – the simultaneous improvement in Coinbase Premium, buy-side ratios, and clean technical structure suggests more than just speculative trading. However, the true test comes at $96k; until then, treat this as a counter-trend bounce within a broader range.” – Marcus Thielen, Head of Research at Matrixport.
Key Terms:
- Bitcoin bullish engulfing pattern confirmation
- BTC break of structure (BOS) trading strategy
- Coinbase Premium Index institutional accumulation
- CryptoQuant taker buy-sell ratio analysis
- Bitcoin fair value gap (FVG) retest levels
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