Bitcoin Price Pattern Points to New Highs With 78% Accuracy

A Bitcoin price pattern with 78% accuracy has emerged on the daily chart, suggesting a potential rise to new highs for BTC. This pattern, known as a "bullish engulfing," has historically led to new local highs in a significant percentage of instances. According to an analysis by Cointelegraph, since 2021, 78% of Bitcoin's bullish engulfing patterns have led to new local highs, especially within broader uptrends. Bitcoin has absorbed over $544 billion in capital since November 2022, pushing the realized market cap to $944 billion. Bitcoin closed Monday with a strong 4.34% daily gain, forming a bullish engulfing candlestick that fully reversed the previous two days of bearish price action. This pattern, coupled with BTC maintaining support above the $105,000 level for two consecutive days, signals a potential shift in market structure and adds weight to the ongoing recovery. To assess the reliability of this pattern, Cointelegraph conducted a comparative analysis of all bullish engulfing formations on BTC's daily chart since 2021. While the bullish engulfing pattern served as the primary signal, additional criteria were used to validate its strength: The engulfing candle must encompass at least the previous two candles. The pattern should emerge at the tail end of a corrective phase, indicating a potential trend reversal. In the sessions following the engulfing pattern, a clear break of structure should be observed to confirm bullish momentum. Since January 2021, Bitcoin has recorded 19 instances of the bullish engulfing pattern meeting the defined confirmation criteria. Out of these, 15 led to the formation of new local highs in the following days or weeks, translating to a historical success rate of approximately 78%. Notably, all 19 instances occurred within a broader bull market context. Meanwhile, the Bitcoin price prediction for 2025 ranges between $100,000 and $150,000, depending on ETF inflows, regulatory clarity, and macroeconomic conditions. Some analysts believe BTC could hit a new all-time high if institutional demand accelerates in the second half of the year. Furthermore, Standard Chartered forecasts Bitcoin reaching $200,000 by year-end 2025, representing an 82% surge from current levels. However, other analysts believe that Bitcoin must crack $110,000 resistance to continue its upward trajectory. Analyst AlphaBTC stated that the next logical move for Bitcoin would be a pullback to take liquidity around the $105,000-$104,000 zone to gain momentum for a move higher. A break and a four-hour close above $109,000 and new all-time highs are on the cards. Overall, the market appears to be in a cool-down phase as Bitcoin on-chain transfer volume and spot trading volume are down. Nevertheless, the long-term outlook for Bitcoin remains bullish, with many analysts predicting significant upside potential in the coming months.