Bitcoin (BTC) gained 5.81% on Tuesday, its biggest daily return since May 8. As the rally unfolded, an engulfing uptrend formed, marking the first significant structural change on the daily chart in the fourth quarter. Traders are now wondering if there is an increased chance of a sustainable recovery over the coming days.
Key points to remember:
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Bitcoin printed a bullish engulfing candle with its strongest daily gain since May, signaling an early expansion of the trend.
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A daily close above $96,000 is required for full bullish confirmation.
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Buy-side trading reached its highest level of the entire bull market as Coinbase Premium turned positive.
Bitcoin Structure Improving, But Major Confirmation Lies Above $96,000
BTC’s rally on Tuesday established a clear higher and lower trend following Monday’s liquidity sweep below $84,000, implying that sellers are losing momentum. The breakout was supported by heavy volume, signaling demand rather than a stop-loss chasing move.
High-volume breakouts tend to produce cleaner follow-through because they reflect aggressive participation from directional buyers, not just passive market makers.
A bullish structure breakout (BOS) above $92,300 is currently forming. A confirmed BOS would shift the short-term trend decisively higher, even if BTC momentarily revisits the fair value gap (FVG) between $90,000 and $88,000 while continuing to climb.
The daily chart still lacks conviction until Bitcoin closes above $96,000. This level is critical because it represents BOS over a longer period. Removing it would confirm a complete change in trend structure, not just a relief bounce.
Once $96,000 is recovered daily, BTC’s immediate target zone extends to $102,000 – $107,000, where a large pool of external liquidity remains. This range encompasses previous swing highs, unmitigated stop-loss pockets, and liquidity from breakout traders waiting above previous resistance levels.
In terms of market structure, these areas can act like magnets; once a decisive breakout clears the final barrier, in this case, the $96,000 level.
Related: Bitcoin Adds $732 Billion in New Capital This Cycle as Market Structure Transforms
Aggressive buyer flow and improving premiums support the recovery
Data from CryptoQuant noted that the market’s buy/sell ratio reached 1.17, the highest reading since the cycle began in January 2023. Such aggressive buy-side dominance typically appears at the start of expansion phases, when structural flows accelerate.
Meanwhile, the Coinbase Premium Index rose to a positive value of +0.03 after weeks of selling pressure in the United States. Positive premium readings historically signal renewed demand from institutional investors. Binance’s spot and perpetual volumes are also increasing in tandem, and the price spread between Binance and Coinbase has narrowed, reflecting healthier global liquidity.
Related: Bitcoin Bollinger Bands Repeat Late 2023 “Parabolic” Bull Signal
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision. Although we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness or reliability of the information contained in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on such information.
