Analysis: Bitcoin has formed a hammer line pattern for two consecutive weeks, which may indicate a key turning point

According to CoinDesk, Bitcoin has shown a continuous hammer line candlestick pattern in the past two weeks, which is extremely rare in Bitcoin's history. The hammer line pattern defined by analyst Checkmate refers to the upper or lower shadow of the candlestick chart accounting for 90% of the total price range, leaving a small entity and long shadow. Data shows that during the week of February 24th, Bitcoin prices fluctuated between a low point of $78,167 and a high point of $96,515 with an amplitude reaching 23%. Then starting from March 3rd for one week, prices fluctuated between a low point of $81,444 and a high point of $94,415 with an amplitude at 16%. Both weeks formed open-high-low-close candlestick patterns with double-digit percentage fluctuations.

Checkmate's analysis shows that there have only been five periods in Bitcoin's history where weekly charts showed hammer line patterns with 90% lower shadows: during the bull market in 2017; near the bull market peak at around $69,000 at end-2021; after Silicon Valley Bank crisis in 2023; after summer pullback in 2023; and during summer slump period in 2024. Although these data do not show clear patterns for bitcoin cycles but particularly notable was adjustment during bull market run-up in year-end-2017 indicating such formations could potentially signal key turning points for price trends.