**Engulfing candles** (or **candles enveloping** in Spanish) are one of the most well-known and powerful **Japanese candlestick** patterns in **technical analysis**. They are considered **reversal** patterns (trend change) and are formed with **two consecutive candles**.
### Main Types
1. **Bullish Engulfing Candle**
- Appears at the end of a **downtrend**.
- First candle: small and **red/bearish** (close < open).
- Second candle: **green/bullish** (close > open), whose **body** completely envelops the body of the previous candle (that is, the open of the second is below the close of the first, and the close of the second is above the open of the first).
- Meaning: Sellers controlled the price, but buyers took control with great strength, "engulfing" the entire previous bearish candle. It is a sign of a possible **shift to bullish trend**.
2. **Bearish Engulfing**
- Appears at the end of a **bullish trend**.
- First candle: small and **green/bullish**.
- Second candle: **red/bearish**, whose body completely engulfs the body of the previous candle.
- Meaning: Buyers lost control, and sellers dominated strongly → possible **shift to bearish trend**.
**Important features for the pattern to be more reliable**:
- The body of the second candle must engulf **the entire** body of the first (the wicks do not necessarily).
- Greater volume in the second candle → more strength.
- Appears in **support/resistance** zones, near moving averages, or after a clear trend.
- More reliable in higher timeframes (4H, daily, weekly).
In your BTC chart, there seems to be a **strong bearish engulfing candle** (bearish engulfing) at the top, followed by a very sharp drop, which coincides with the movement you show (large red candles downward, with sell arrows and support breakouts).
### Why has BTC dropped so much from yesterday to today?
According to the most recent price data (February 11, 2026):
- **February 10, 2026**: BTC opened around **$70,100–$70,500**, closing near **$68,800**.
- **February 11, 2026**: Opened at **$68,800**, reached a high of ~$69,200 and fell to a low of **$66,400–$66,500**, closing/trading around **$67,000–$67,400** (approx. -2% to -3% on the day, but with more intraday drop from yesterday's levels).
This is part of a **broader correction** that has been going on for weeks:
- Bitcoin came from all-time highs above **$126,000** in October 2025.
- Since early February 2026, it has had several strong drops (even touching lows near $60,000–$63,000 in the early days of the month).
- Temporarily recovered to $70,000–$72,000, but could not hold it and is in a bearish range **$66,000–$72,000**.
- The recent drop (last 1–2 days) is ~2–4% daily, but it accumulates a correction of **~45–50%** from the all-time high.
**Main reported reasons**:
- **Ordered deleveraging** (liquidation of leveraged positions without total panic).
- **Bearish risk sentiment** in general markets (selling in tech, volatility in precious metals).
- **Doubts about the crypto cycle** after the peak of 2025 and lack of new strong bullish catalysts.
- **Normal correction post-euphoria** after previous explosive rises.
It does not seem like a sudden one-day collapse, but a continuation of a **corrective trend** lasting several weeks, with high volatility typical of BTC.
The chart you shared shows breakouts of horizontal and diagonal supports, with strong selling candles (possible bearish engulfing in the upper zone), reinforcing the bearish pressure. Good luck with trading! ✌️
#Engulfing #trading #AnfeliaInvestment $BTC
