Analyst sees Bitcoin 'god candle' as signal for new bull market

Bitcoin rose 26.81% last week, from $62.700 to $79.500, a move that analyst alicharts compares with explosive weekly candles from 2019 and 2023. In both cases, such a sudden surge marked the end of a bear market. Whether that is also the case now remains to be seen, but the similarity is attracting attention.

Bitcoin is available at OKX and Bybit.

In brief:

• Bitcoin rose more than 26% last week, showing a pattern that also emerged in 2019 and 2023
• Both earlier moves began as a short squeeze and marked the start of a new upward phase
• Analyst alicharts sees this as a possible early signal of a new bull cycle, but presents it as a historical comparison

Pattern from 2019 and 2023 may repeat itself

According to alicharts, the end of a Bitcoin bear market in previous cycles was marked by one striking feature: an explosive weekly price reversal that almost no one sees coming. In April 2019, Bitcoin rose almost 32% in one week, from around $3.300 to $4.700. In January 2023, shortly after the collapse of FTX and amid strongly negative market sentiment, a weekly rise of almost 25% followed, from $15.900 to $19.700.

Both moves began as a short squeeze: rising prices forced bearish traders to close short positions, which further strengthened the rally. The same mechanism appears to be playing a role now.

Move from $62.700 to $79.500 in one week

Bitcoin’s recent weekly rise defies the expectations of many market participants. Many expected a bottom in October, in line with the four-year cycle theory. Instead, the price shot up from $62.700 to $79.500, a gain of 26.81% within seven days.

At the time of writing, Bitcoin is trading around $77.200, a slight gain of 0.3% over the past 24 hours. Earlier, billions in positions had already been liquidated as a result of the price movement.

alicharts states that if history repeats itself, this kind of powerful weekly reversal could be an early sign that Bitcoin has entered a new bull cycle. This is expressly a historical comparison, not a certainty. Whether the bottom has actually been reached will become clear in the coming weeks.