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Bitcoin 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.