A common candlestick signal is being read wrong by most traders, and getting the definition right matters for anyone timing a market bottom.

• A true bullish engulfing candle has to dip below the previous candle's low first.
• Then it has to close above the previous candle's *high* — not just above its body.
• Most people only compare bodies, which triggers false signals.
• On Bitcoin, that exact setup marked the bottom before the run that followed.

Outlook: Traders using the stricter rule will get fewer signals, but the ones they do get tend to mark real turning points.

## Bitcoin Levels

• **Bias:** Bullish — the pattern marked a major bottom and reversal.
• **Resistance:** $26,451, the prior candle's high that had to be cleared.
• **Confirmation:** Close at $26,538, above that high, completing the signal.