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Dark Cloud Cover Pattern Guide for Crypto Traders

Dark Cloud Cover Pattern Guide for Crypto Traders

The Dark Cloud Cover is a two-candle bearish reversal pattern that signals the end of an uptrend and the start of a meaningful pullback. It is the bearish mirror of the Piercing Line pattern, which marks the bottom of a downtrend. In crypto markets where short-term moves can travel 8% to 15% in a single session, recognizing the pattern in real time is a meaningful edge. The Bitcoin chart printed a textbook Dark Cloud Cover at the $82,000 zone on May 6 of this year, and the resulting move pulled BTC down 12% over the following two weeks.

The pattern works because it captures a specific moment of buyer exhaustion followed by seller reclaim. The first candle continues the trend higher with confidence. The second candle opens above the…

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