Bitcoin (CRYPTO: BTC) has climbed about 15% over the past month, with technical analysts pointing to a classic three-period pattern that may indicate a shift toward stronger bullish momentum.

Three-Period "Morning Star" Pattern

In an Apr. 28 post on X, crypto analyst Ali Martinez highlighted the formation of a Morning Star pattern on Bitcoin's chart, a signal often associated with trend reversals.

The pattern unfolds over three periods, transitioning from strong selling pressure to indecision and then to renewed buying strength. Martinez said this reflects a shift from fear-driven selling to what he described as "aggressive conviction" among buyers.

He added that Bitcoin has formed similar patterns three times over the past three years on higher timeframes, each preceding a major upward move.

Currently, the pattern is developing on the monthly chart as Bitcoin reclaims the $78,000 level. Martinez noted that holding above the key support near $73,000 would help sustain the bullish outlook.

High-Conviction Investors Dominate

Martinez also pointed to on-chain data suggesting a shift in market composition. The Percentage Realized Cap, a metric tracking how much of Bitcoin's value is held by recent buyers, has dropped below 7%.

Such low levels historically indicate reduced retail participation and a quieter market environment, where short-term traders have largely exited.

In previous cycles, similar conditions have coincided with market bottoms, suggesting that selling pressure may be exhausted and that long-term, high-conviction investors are now dominant.

Martinez added that approximately $3 billion has flowed into the crypto market over the past month, marking the first positive net inflow since December. This shift suggests improving liquidity conditions and a transition from capital preservation to accumulation.

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