A bullish engulfing pattern has appeared on BTC’s candlestick chart. With this signal, do you still dare to stay bearish?

In just two days, BTC surged by $7,000 and is now standing at another key level. The current price has already touched the 93,600 resistance zone. I bet quite a few people are thinking, “The rally is too sharp; it’s time for a pullback,” and are starting to set up short positions.

A pullback will definitely come—the question is when. Take a close look at the series of consecutive lows left behind by the previous drop—those spots have actually accumulated a lot of liquidity. Will the major players sweep through this liquidity first, followed by a fake breakout and then a retracement? That’s quite possible.

Personally, I judge that in the short term, BTC is very likely to test around 96,600 first, which is a relatively good spot to consider a counter-trade. After all, you need a solid foundation to build a skyscraper. Judging by the current trend, we’ll need at least one more significant deep pullback before we see a strong 15-minute breakout candle. As for reference levels, you can watch 95,800, consider adding positions at 96,800, and set a stop loss at 97,650.

Compared to BTC, ETH is showing even more strength—news of the upgrade being completed has indeed provided support, and in the short term, it may outperform BTC. If you want to trade, 3,280 is a level to watch, 3,310 is a good entry point, and set your defense line at 3,335.