Bullish Reversal

Definition ∞ A bullish reversal indicates a shift in market sentiment from negative to positive. This pattern signals that a downtrend in an asset’s price is concluding, and an upward price movement is commencing. Technical analysis often identifies this through specific chart formations and volume changes, suggesting buyer dominance is returning. For digital assets, such a shift can precede significant price appreciation.
Context ∞ Observing a bullish reversal in cryptocurrency markets often precedes reports of increased investor confidence or new capital allocations. News articles frequently highlight these technical signals as precursors to broader market upturns. Understanding this concept helps interpret reports on market bottoming or the commencement of new growth cycles for various digital currencies.