## Cryptocurrency Absorption: The Structure That Predicts Market Turns

Absorption is one of the most reliable technical patterns in cryptocurrency trading, responsible for approximately 80% of significant movements from key levels. Understanding how this structure works is essential for traders seeking to anticipate market reversals.

### How Bullish Absorption Works in Cryptocurrencies

In a bullish absorption, a lower-close candle is completely engulfed by a wider higher-close candle. This pattern strictly emerges from a support level and represents a shift in market control: buyers are taking over after a period of selling pressure.

What makes this pattern special is that it shows explicit rejection of lower prices. The small initial candle indicates hesitation, but the subsequent bullish candle demonstrates that buyers are willing to pay significantly more, suggesting the potential start of a longer-lasting bullish trend.

### The Bearish Absorption: The Inverse Mirror

When a higher-close candle is completely covered by a subsequent lower-close candle, we are looking at a bearish absorption. This pattern forms at resistance levels and indicates that sellers have aggressively rejected higher prices.

This type of absorption indicates that the market is losing buying strength and that sellers are beginning to dominate. It is particularly significant because it shows firm selling decision, not just indecision.

### Practical Application in Trading

Executing strategies based on absorption requires discipline and confirmation. Once a strong support or resistance level( is identified, when the absorption pattern completes after the close of the next candle, you can consider opening a position aligned with the pattern’s direction: bullish after a bullish absorption, bearish after a bearish absorption.

For more robust results, apply this analysis on higher timeframes such as 1-hour and 4-hour charts, where the resulting movements tend to be broader and more reliable. On lower timeframes )5 minutes, 15 minutes, 45 minutes(, absorption also creates opportunities, although with smaller movements and more market noise.

) Advantages and Limitations

The reason absorption works is mechanical: it represents real changes in participant behavior. However, it is not foolproof. It is crucial to confirm this pattern with other indicators and maintain proper stop-loss orders, especially on lower timeframes where false signals are more frequent.