A rare bullish signal for Bitcoin (BTC) has appeared after the cryptocurrency posted one of its strongest weekly gains in the last couple of years.
Over the past week, Bitcoin rose from $62,700 to $79,500, showing a gain of over 20%. This dynamic mirrors powerful reversal candles observed at key market turning points in previous cycles, including in 2019 and 2023.
According to market analyst Ali Martinez, similar weekly candles have appeared closer to the end of Bitcoin's bear markets and at the beginning of new bullish phases.
The latest rally resembles Bitcoin's recovery in 2019, when the asset posted a 32% weekly gain after a prolonged bear market. This surge marked the end of prolonged selling pressure.
A similar situation was observed in January 2023 following the FTX collapse. Market sentiment was extremely bearish at the time, yet within one week, Bitcoin surged by 24.90%, laying the groundwork for the next phase of market recovery.
Notably, large weekly reversal candles often appear during short squeezes, as rising prices force bearish traders to close their positions, amplifying the rally.
The latest surge caught many investors off guard, as their expectations revolved around a deeper correction and reaching a bottom at a later stage in the cycle.
Although no single indicator can confirm a new bull market, similar weekly candles have appeared near major turning points in the Bitcoin market.
Crypto analyst Moustache posted a two-week MACD chart, where the indicator is approaching a bullish crossover.
His analysis revealed similar crossovers near Bitcoin's major lows in 2015, 2018, and 2022. Each of these signals was followed by sharp upward moves. The analyst identified the current situation as the 2026 market bottom, leading to the beginning of bullish surges.
On the evening of August 23rd, Bitcoin was trading around the $77,600 level, showing a weekly gain of 23%.
end-content
