Bullish Engulfing Candles Ignite the Market

04.07.25 12:21 AM By Stormrake

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The risk-on flows we’ve been talking about — and patiently waiting for — have finally found their way back into the crypto space. Traditional indices had another bullish day and, for what feels like the first time in weeks, that risk appetite has spilled into digital assets too, with bullish engulfing candles appearing across nearly every major cryptocurrency.

Note: a bullish engulfing pattern is a green (bullish) candle that closes higher than the previous day’s opening price, effectively ‘engulfing’ the prior day’s red (bearish) candle. It’s a classic signal that momentum is shifting.
Bitcoins bullish engulfing candle…
An engulfing candle suggests the end of the current trend and the beginning of a reversal — in this case, a bullish engulfing candle implies the bearish trend has run its course and we could be at the start of a fresh bullish leg higher.

Bitcoin gained nearly 4% intraday, coming just shy of $110k at its high before closing back at $108.8k, still up 3% on the day. The total altcoin market rose around 4%, with most of the top 100 coins outperforming that figure. Ethereum gained nearly 7%, Hyperliquid 8%, Sui 8.5% and Sonic up 10%. However, two majors underwhelmed over the last 24 hours: Solana and Ripple were up just 3.72% and 2.84% respectively, underperforming the broader altcoin move and failing to print bullish engulfing candles like the rest of the market.

With flow finally back in the space and momentum clearly with the bulls, reclaiming the final structural level is what’s needed to push towards new all-time highs and set up the back half of the year. The key level remains $110.6k — a break and close above this would confirm the bullish structure and open the door for Bitcoin to retest its record highs.

Stormrake Spotlight: Hyperliquid (HYPE) ($40.34)

As mentioned, HYPE rallied 8% yesterday and printed a textbook bullish engulfing candle. Given that HYPE was already in a bullish structure and had strong momentum, this strengthens the bullish case even more. It’s now testing its resistance region once again — but with Bitcoin’s tailwinds and its own clear trend, the odds favour HYPE pushing through and setting fresh highs.

BTC/USD Key Levels and Price Action:

Bitcoin’s engulfing day has flipped momentum and structure firmly back to the bulls, sending BTC back to the key resistance level of $109.5k after bouncing off the monthly central pivot range (CPR) at $105k. A break above this resistance would likely see BTC reclaim its all-time high and confirm the longer-term bullish trend.

BTC Total ETF Flows for 2 Jul: $ + 407.8 million

(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
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*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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