Bitcoin (BTC) rose by 5.81% on Tuesday, marking its largest daily return since May 8. As the rise escalates, a bullish engulfing pattern forms, representing the first major structural shift on the daily chart in the fourth quarter. Traders are now wondering if there is an increased chance of a sustainable recovery in the coming days.
Bitcoin recorded a bullish engulfing candle with the strongest daily gain since May, indicating early expansion in the trend.A daily close above $96,000 is required to confirm the full bullishness.
Buying side trading has risen to the highest reading in the entire bull market as the Coinbase Premium turns positive.
Bitcoin's structure has improved, but the key confirmation lies above $96,000.
BTC's rise on Tuesday established a clear higher high and higher low pattern after liquidity was swept on Monday below $84,000, indicating that sellers are losing momentum. The breakout was supported by strong trading volume, indicating demand rather than a stop-loss driven move.
Breakouts with significant volume typically lead to clearer follow-through as they reflect strong participation from trend-following buyers, not just passive market makers.
A bullish structural break (BOS) is currently forming above $92,300. Confirmation of the BOS will decisively shift the short-term trend upward, even if BTC temporarily returns to the fair value gap (FVG) between $90,000 and $88,000 while continuing to rise.
The daily chart still lacks full conviction until Bitcoin closes above $96,000. This level is critical as it represents the BOS on the higher time frame. Exceeding it will confirm a complete shift in the trend structure, not just a temporary bounce.
Once $96,000 is reclaimed on a daily closing basis, BTC's immediate target range expands toward $102,000–$107,000, where a large block of external liquidity remains. This range includes previous swing highs, unfilled stop-loss pockets, and liquidity from traders waiting for a breakout above previous resistance levels.
In terms of market structure, these areas can act as magnets; once the critical breakout clears the final barrier, in this case, the $96,000 level.
Relevant: Bitcoin added $732 billion in new capital this cycle as the market structure shifts.
A strong flow from the buying side and an improvement in the premium support the recovery.
CryptoQuant data indicated that the buy-to-sell ratio in the market rose to 1.17, the strongest reading since the start of the cycle in January 2023. This strong buy-side dominance typically appears in the early stages of expansion periods when structural flows accelerate.
Meanwhile, the Coinbase Premium index has turned positive at +0.03 after weeks of US selling pressure. Historically, positive premium readings indicate renewed demand from institutional investors. Spot and perpetual trading volumes on Binance are also rising in parallel, narrowing the price gap between Binance and Coinbase, reflecting healthier global liquidity.
Relevant: Bitcoin's Bollinger Bands are signaling a "parabolic" bullish trend from late 2023.
