Crypto analyst Ali Charts said Bitcoin may be showing the same kind of weekly reversal that marked the end of bear markets in two earlier cycles. In his view, those turning points appeared when most market participants were not expecting them and were often driven by a short squeeze.
Ali pointed to past examples. In 2019, Bitcoin posted a 31.98% weekly gain, a move he said helped confirm the end of the bear market and the start of a new upswing. In January 2023, after the collapse of FTX had pushed market sentiment into deep pessimism, Bitcoin rose 24.90% in a single week, reversing widespread bearish expectations.
He argued that the current market may be producing a similar setup. Many investors had expected Bitcoin to form a market bottom in October based on the four-year cycle theory, but the asset has already climbed from $62,700 to $79,500, up 26.81% over the past week. If the historical pattern repeats, Ali said, the latest strong weekly reversal could become an early sign that Bitcoin is entering another upward cycle.
According to BlockBeats, crypto analyst Ali Charts said on Aug. 23 that Bitcoin may be showing a strong weekly reversal pattern that has appeared near the end of bear markets in two previous cycles.
Ali said those reversals tended to arrive when most market participants were not expecting them, with the weekly candle acting as a trend-change signal. He added that this kind of move usually begins with a short squeeze: as price rises, bearish traders add more short positions, and when the advance accelerates, those shorts are forced to close, pushing price higher.
He cited historical data to support the comparison. In 2019, Bitcoin recorded a 31.98% gain in a single week, a move that he said helped confirm the end of the bear market and the start of a new upward phase. In January 2023, after the collapse of FTX had driven market sentiment into extreme pessimism, Bitcoin rose 24.90% in one week, reversing a large amount of bearish positioning and expectations.
Ali said the market may now be seeing a similar structure. Many investors had previously expected Bitcoin to form a market bottom in October based on the four-year cycle theory. Instead, Bitcoin has already climbed from $62,700 to $79,500, posting a weekly gain of 26.81%.
In Ali's view, if the historical pattern repeats, this strong weekly reversal could serve as an early sign that Bitcoin is entering a new bullish cycle.
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