Bearish Engulfing is a candlestick pattern used in technical analysis of the crypto market, which signals a potential trend reversal from bullish to bearish. This pattern forms when a bullish candlestick (closing higher than its open) is followed by a bearish candlestick that closes below its open and covers the entire body of the previous candlestick.

Below we provide the main characteristics of Bearish Engulfing:

• Two Candlesticks : This pattern consists of two candlesticks, where the first candlestick is bullish and the second is bearish.
• Size and Close : The bearish candlestick should have a larger body and completely grasp the body of the previous bullish candlestick.
• Market Context : Bearish engulfing often appears after a sustained uptrend, signaling that the momentum of buyers may begin to weaken and selling pressure increases.

Traders usually take this pattern as a signal to consider selling positions or to re-evaluate existing long positions. The success of this pattern as a trend reversal indicator can be reinforced with confirmation from high trading volume or other technical indicators.