In our latest Learn 101 livestream session, crypto experts shared insights on the shifting dynamics of the stablecoin ecosystem.

 are making a comeback, but this time, the competition is heating up. While 

 continues to dominate the market, a new wave of 

 is emerging, each with its own proposition. From institutional-backed tokens to 

, the race is on to determine which stablecoin will take the lead. What sets these newcomers apart — and could any of them realistically challenge USDT’s throne?

, we tackle the big question: Newcomers vs. USDT: Who Will Win?

, provides a recap of our Learn 101 livestreams, offering you comprehensive expertise and insights from leading figures in the crypto industry in case you miss the livestream.

Joining the livestream on Apr 24, 2025, were two distinguished guests: Paz Gonzalez, trader and founder of 

magazine, and Jip Molenaar, full-time trader and co-founder of Tribe Capital. Under the moderation of Sabrina Chua, Crypto Evangelist and Senior Content Strategist at Bybit, this episode takes a deep dive into the shifting dynamics of the stablecoin ecosystem.

Why the world is suddenly crazy about stablecoins

Stablecoins are once again making headlines — but what’s driving this renewed momentum? Several key developments have pushed stablecoins into the mainstream conversation, including Donald Trump’s recent proposal for a 

. According to Paz Gonzalez, these announcements signal a broader shift tied to the weakening influence of the US dollar. In times like these, stablecoins could gain mass adoption, giving governments a way to reassert monetary control through a digital proxy.

Jip Molenaar agrees with Gonzalez, adding that Bitcoin is unlikely to become the world’s primary currency, despite what many once believed. Instead, Molenaar sees Bitcoin’s future role as that of a store of value — 

 — while stablecoins will take on the role of everyday money, used for payments, bill settlements and daily transactions. 

, Molenaar argues, has helped bring digital assets into the political mainstream, making the concept of crypto usage more palatable to the general public than ever before.

Molenaar also shares his personal experience transitioning from euros to USDT, a process he describes as challenging and significant. Living in Europe, switching to a US dollar–pegged stablecoin wasn’t easy — and that’s precisely why he believes most users won’t readily jump to new alternatives. For many, USDT and 

Paz sees Fidelity’s entry into stablecoins as a bullish signal for the industry. As a well-established and trusted financial institution, Fidelity’s involvement could sway skeptics who have traditionally avoided crypto. Its participation brings credibility — and potentially, a new wave of adoption.

He also emphasizes that the legitimacy of any currency, fiat or crypto, depends upon being backed by a clear source of value. Historically, 

. For stablecoins to earn that trust, the same principle applies — they must be transparently backed. Today, more investors recognize that leading stablecoins are supported by reserves, and are subject to increasing regulatory oversight.

However, despite this progress, Molenaar remains cautious. He warns that another event like the 

 is still possible if stablecoins aren’t properly backed and transparently managed. Without clear support mechanisms, he believes trust will erode — and widespread adoption will stall.

USDT currently holds the largest market share among all stablecoins and is the most actively traded. Molenaar attributes this dominance to the convenience and wide acceptance of USDT across trading platforms. He points out that the infrastructure for USDT is already deeply entrenched in the crypto ecosystem, making it far easier to execute trades and move funds. Because of this strong foundation, he believes it will be extremely difficult for any competing stablecoin to unseat USDT.

Gonzalez agrees: while she personally holds some USDC, she says that when people ask her to send a stablecoin, it’s almost always USDT. Even though USDC has made efforts to challenge USDT’s dominance, Gonzalez doesn’t see that happening anytime soon — if ever. She also underscores the fact that stablecoins like USDT aren't meant to be investments in the way Bitcoin or altcoins are. Instead, they serve more practical purposes, facilitating transactions and providing stable on-chain alternatives to fiat.

Molenaar adds that older generations, particularly baby boomers, tend to wait until new markets are validated by trusted institutions before getting involved. With firms like Fidelity now backing crypto through 

 (ETFs) and exploring stablecoin adoption, that validation is underway. Because Fidelity has integrated USDT into its ecosystem, Molenaar believes that conservative investors will naturally gravitate toward it over less familiar alternatives.

Gonzalez also shares her approach to risk management. Rather than going all-in on one asset, she diversifies and experiments cautiously — allocating small amounts to new opportunities. 

, for example, is one method she uses to generate passive income while testing out new protocols or tokens.

When it comes to adoption, Gonzalez sees real-world use cases driving interest in stablecoins. She mentions the new Wyoming stablecoin, which offers local taxpayers a slight reduction on their annual tax bills. While its benefits may currently apply to a small group, she believes this kind of practical utility is crucial. To achieve broader adoption, stablecoins — including smaller, emerging ones — need meaningful use cases tied to local economies. 

Still, for global accessibility and widespread usage, she maintains that a well-established option such as USDT is essential.

Stablecoins and trading — what really matters to traders

Molenaar is all-in on USDT, choosing to avoid the risks that come with lesser-known stablecoins. For him, USDT offers the highest liquidity and the lowest risk, due to its widespread adoption. While he's open to switching if a new, dominant stablecoin emerges, he’s not willing to gamble on smaller or less established options at this time.

Gonzalez adds an important perspective: stablecoins don’t just enable transactions — they also reflect the health and movement of the broader crypto market. Since stablecoins support liquidity within cryptocurrency networks, their flows can signal shifts in underlying asset trends. Traders are beginning to pay more attention to this relationship.

While most stablecoins are backed by USD, some stablecoin creators are now exploring alternative pegs, such as gold. But for Gonzalez, the backing isn't the main concern: usability is. She prioritizes the ease with which a stablecoin can be used for trading. In her view, investors today care more about functionality and integration with platforms than the specific assets backing the coin. 

Molenaar agrees, adding that ease of use often comes down to habit — knowing the ins and outs of how to trade with a particular coin saves time and effort. He also points out that staking stablecoins typically yields higher returns than do traditional bank savings accounts. That’s one reason he keeps minimal funds in banks — in addition to his distrust of the traditional banking system. He prefers to let his funds work for him through stablecoin staking.

Gonzalez also sticks with USDT because of its simplicity and reliability. She takes a cautious, thoughtful approach to her finances, due to her awareness of how hard she works to earn her money. When trading with USDT, she invests time in researching opportunities. Therefore, she believes that having a deep understanding of stablecoins is crucial in order to make smart financial decisions.

Both Molenaar and Gonzalez highlight the importance of using a trusted platform when holding and trading stablecoins. Molenaar uses Bybit because he feels confident his funds are secure there, and Gonzalez echoes this sentiment — rather than spreading her assets across multiple exchanges, she sticks with Bybit for its reliability and trustworthiness.

This episode of Learn 101 offers a thought-provoking look at the battle between emerging stablecoins and the reigning stablecoin leader, USDT. While newer stablecoins may bring niche advantages and localized utility, USDT’s deep liquidity, global reach and entrenched usage continue to give it a clear edge. For now, USDT remains the go-to choice. But as the ecosystem continues to evolve, the race is far from over.

Intermediate

Bybit Learn Livestream Newcomers vs. USDT: Who will win? featured image

EN_2504-T53331_Learn Livestream_Speakers_1600x900_B.png

Learn Live ICYMI: Can the upcoming stablecoins beat USDT?

Bybit Megadrop is a token launch platform that lets users earn free airdrops by subscribing to Fixed-Term Bybit Savings plans and completing simple tasks.

The crypto world never sleeps — and neither do opportunities to earn. One of the most exciting ways to get in early on promising projects is through token launches, whereby new cryptocurrencies are introduced to the market. Traditionally, early participation comes with barriers: you might need to stake, trade heavily or rely on luck in oversubscribed launchpads.

Bybit Megadrop changes the game by offering a more rewarding and accessible way to earn free tokens before they hit the market — all while growing your savings.

In this article, we’ll explain what Bybit Megadrop is, how it works, the benefits of joining, how to participate and whether it’s the right fit for your crypto strategy.

 is a token launch platform that lets users earn free 

 by subscribing to Fixed-Term Bybit Savings plans and completing simple tasks.

This new platform integrates Bybit Earn with early-stage 

 projects, giving users exclusive access to rewards before tokens go live on the Bybit Spot market. Think of it as a smarter, more educational and risk-free way to “airdrop farm” — but with real structure and substance.

Bybit Megadrop combines savings, learning and rewards into a unified experience. Here's how the flow works.

1. Subscribe to a Fixed-Term Bybit Savings plan

To participate, users must first subscribe to a Fixed-Term Bybit Savings plan using eligible tokens specified on the event page. These tokens could include MNT, USDT, USDC or BBSOL. This isn't just a gateway to Megadrop — it's also a way to grow your holdings. While your funds are locked for a fixed period, you earn interest through Bybit Earn.

This subscription acts as your entry ticket to Megadrop.

Once you’ve subscribed, you’re entitled to a portion of the airdrop rewards from the featured token’s project. These airdrops are typically distributed before the token is publicly listed on Bybit, giving you early exposure and the potential for upside if the token gains traction post-listing.

The amount of airdrop you receive depends upon your subscription amount, the total amount subscribed by all participants and whether you complete additional side tasks.

Please note that you will need to claim your airdrop rewards manually once the event ends.

3. Complete side tasks for bonus airdrops

To boost your airdrop share, you can complete optional side tasks. These tasks are simple, and are meant to educate users about the project and keep them engaged on the Bybit platform. Examples include:

Completing more tasks will grant you more points, which essentially results in a larger share of the token airdrop pool.

Bybit Megadrop isn’t just another airdrop campaign — it’s a win-win experience for users looking to maximize value with minimal risk.

The best thing about Bybit Megadrop is that when you subscribe to a Fixed-Term Bybit Savings plan, you don’t just earn the plan's regular APR — you also get free airdrop tokens. It's passive income layered with passive rewards.

Taking part in Bybit Megadrop will enable you to obtain tokens before they hit the Spot market, which could offer potential upside if the token rallies post-listing.

The barrier to entry is low, and there’s no need to buy or stake new tokens. You simply use what you already have in savings, and get rewarded on top of your fixed return — with no strings attached.

Looking to upsize your earnings? Simply complete more side tasks to earn more points. This way, you’ll be able to increase your chance of getting more tokens airdropped to your account.

Now that you have a better understanding of what Bybit Megadrop is, let’s explore how you can get started. If you don’t already have a Bybit account, you’ll need to create one. You can also check out our 

: Log in to your Bybit account and hover your cursor over the 

Select the event you would like to participate in. You will then need to subscribe to a Fixed-Term Savings plan on Bybit Earn to accumulate points. The eligible plans will be listed under the corresponding project on the Megadrop page. 

You may also complete tasks with point multipliers to earn points faster.

Once the event ends, the airdrop you receive will be based on your share of points earned in each pool.

Bybit Megadrop is designed for all types of crypto users, from beginners to veterans, and offers a compelling, low-risk way to access new token launches.

If you're someone who’s already using Bybit Earn, then Bybit Megadrop is a natural next step. It enhances the value of your fixed-term savings by layering on free token airdrops from promising web3 projects. You get to earn both APR and tokens, without having to take on additional investment risk.

Even if you’re new to Bybit, Megadrop makes participating in token launches easier and more rewarding. There’s no need to buy new or volatile assets — just deposit what you already have into a Fixed-Term Savings plan. That’s it — and you’re now eligible for airdrops.

For users who enjoy completing tasks or learning about new projects, the optional side missions are a fun way to earn additional tokens while becoming more familiar with the web3 ecosystem. If you're a retail user looking to stretch your capital, these tasks give you a chance to unlock a much larger share of rewards.

In short, if you're looking for a safe, flexible and engaging way to access new tokens early (without spending more or risking your funds), then you’ll absolutely want to consider joining Bybit Megadrop.

Bybit Megadrop combines the best of both worlds: steady earnings from savings and exciting token rewards from new projects. It’s a win for long-term holders, risk-averse users and web3 explorers alike.

Ready to try it? Subscribe, complete a few tasks and claim your share of the next big token — before anyone else!

Beginner

Bybit Megadrop.png

Bybit Megadrop: A smarter way to earn airdrops from new tokens

Tezos’ Rio upgrade enhances staking flexibility, speeds up operations 3x, and allocates 10% rewards to boost L2 adoption via the Data Availability Layer (DAL). 

The S&P 500 futures rose after news of US-China trade talks, rebounding from Tuesday’s 0.77% decline as investors await the Fed’s rate decision and Powell’s guidance. Gold climbed above $3,400, buoyed by a weaker US dollar and risk-off sentiment, and is technically bullish with momentum targeting a retest of the $3,500 record high ahead of the Fed’s policy decision. The Coindesk Indices, which tracks the broader crypto market, rose 1.64%, with Bitcoin up 0.69% and Ether down 1.87%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is KAITO, which surged 39.2% after Kaito AI announced $71M in distributed rewards and unveiled upcoming products.

Kaito (KAITO), founded in 2022, is a $1,099/month AI-powered crypto search engine that aggregates data from web3 sources like Twitter, Discord, and forums, using advanced AI to deliver context-rich, sentiment-filtered insights. Kaito AI has 

 over $71M in rewards to users within 5 months of launching Yaps, excluding the upcoming $KAITO airdrop, with more products like Kaito Earn, Connect v2, and Capital Launchpad on the way.

Check out the latest prices, charts, and data of 

 upgrade enhances staking flexibility, speeds up operations 3x, and allocates 10% rewards to boost L2 adoption via the Data Availability Layer (DAL). It reduces staking cycle times from 3 days to 1, tightens baker inactivity rules for better network resili`ence, and strengthens Tezos’ position for L2 scalability and user experience improvements.

Yesterday, BTC spot ETFs saw total outflows of $122.4M, with $89.9M from GBTC and $32.5M from non-GBTC funds.

, a decentralized bandwidth marketplace, launched its node for users to earn points and qualify for a future airdrop by sharing unused internet. Users can run a free node, earn 1 point every 10 minutes, and boost earnings via quests and referral codes.

4.png

Tezos Rio upgrade boosts staking speed and L2 incentives with improved network resilience

In this article, we’ll look into Bybit Pay, how it works and provide you with a step-by-step guide to sending and receiving payments on Bybit Pay.

 is a next-generation payment solution that enables users to send and receive crypto or fiat with just a few taps via QR code or internal transfer. Whether you're settling bills, splitting payments with friends or running a global business, Bybit Pay simplifies cross-border transactions within a secure and intuitive environment.

In this article, we’ll walk you through Bybit Pay, show you how it works and provide you with a step-by-step guide to sending and receiving payments on Bybit Pay.

 is a powerful payment service designed to connect your crypto wallet to real-world financial needs. Whether you're sending money to friends or making payments to merchants, Bybit Pay allows seamless transactions conducted in both crypto and fiat — all from within the Bybit platform.

Its mission is to bridge the gap between digital assets and traditional finance by enabling users to spend their crypto effortlessly, just like they do with cash. With support for currencies like BTC, ETH and USDT (and even fiat such as BRL), Bybit Pay turns your crypto into a practical tool for everyday payments.

Bybit Pay makes it easier than ever to use your crypto. Whether you're paying online, transferring funds to a friend or scanning a QR code in-store, Bybit Pay supports seamless payments in both crypto and fiat funds.

Bybit Pay simplifies spending both locally and globally.

Bybit Pay operates through two main methods: QR code payments and internal transfers. Users can scan a QR code to pay merchants or friends, or send funds directly using a phone number, email or Bybit UID. It supports both crypto and fiat, with seamless access via the Bybit app or website.

: While the Bybit Card functions like a debit card for in-store purchases, Bybit Pay enables direct wallet-to-wallet transfers and merchant payments, without any need for physical hardware. It’s faster, flexible and perfect for global digital transactions.

How to send crypto and fiat with Bybit Pay

Bybit Pay makes it easy to send crypto or fiat to other users or merchants. You can pay by scanning a QR code, or via internal transfer using a phone number, email or UID.

2. Choose your payment method, and enter the recipient’s email, phone number or Bybit UID.

Enter the amount you wish to send. Tap on the 

 to convert from fiat to crypto, if needed. Add a note (optional), avoiding special characters.

5. Review the details, and confirm your payment after completing two-factor authentication (2FA).

Once your funds are sent, your payment history is viewable at the bottom of the Bybit Pay screen or by tapping on the 

Bybit Pay makes sending crypto as easy as sending a message.

How to receive crypto and fiat on Bybit Pay

Receiving payments on Bybit Pay is simple and flexible. Users can receive crypto or fiat via either internal transfer or QR code, depending upon the sender’s preference.

The sender can use any of these details to transfer funds directly from their Bybit Pay interface.

Bybit Pay makes receiving crypto fast, flexible and borderless. The following is a step-by-step guide for requesting a payment using a personalized QR code — right from the Bybit app.

. This opens your personalized payment interface.

 to enter a fiat amount, and the amount will automatically convert to crypto.

: Your QR code updates in real time in order to reflect the specified details. Simply show it on-screen or use the 

: After the sender has completed the transfer, go to 

 to confirm receipt and track incoming funds.

Bybit Pay bridges crypto and traditional finance, offering seamless, secure and instant payments — all from one place. Whether you're sending or receiving crypto, or spending it globally, it’s never been easier to do. 

 today to experience secure, borderless crypto and fiat payments — right from your app or browser.

Bybit Pay send & receive.png

How to send and receive payment using Bybit Pay

Candlestick

Trading

Marubozu candlestick is a lesser-known technical indicator. But did you know it is effective to predict the future price direction of an asset?

Marubozu.jpg

Marubozu_Pattern.jpg

Blow-off_Top.jpg

Japanese_candlestick.png

Marubozu_is_the_sole_differentiator_between_bullish_and_bearish.jpg

Bullish_Marubozu_Pattern.png

Bearish_Marubozu_Pattern.jpg

Trade_the_Bullish_Marubozu.png

How_to_Trade_the_Bearish_Marubozu.png

Bearish_in_June_1.jpg

2-hour_Bitcoin_example.png

Marubozu_vs._Engulfing_Pattern.jpg

The Marubozu candlestick is a lesser-known pattern among crypto traders, as it’s rare to find it on trading charts. However, Marubozu formations are easy to identify once you know what to look for. Once the Marubozu pattern is spotted, you can determine how effective its signal may be based on the pattern’s location within a larger trend.

While not occurring frequently, Marubozu patterns can be found on any chart time frame for any cryptocurrency. In this article, we’ll discuss what the Marubozu candlestick pattern looks like, and how to trade it once you’ve spotted it.

We’ll also review other indicators you can use to confirm a Marubozu pattern, and what limitations exist for trading it.

What Is the Marubozu Candlestick Pattern?

A one-candle pattern, the Marubozu candles look like a rectangular block because it has no wicks (or upper and lower shadows). It is a 

 used to predict the future direction of an asset’s price.

The pattern can be colored either red (bearish) or green (bullish, sometimes colored black). Candlestick patterns and interpretations originated in Japan in the 18th century. Marubozu is a Japanese word meaning “bald” or “shaved head” — which makes sense, as the pattern is missing a wick to the topside. 

The Marubozu pattern is simple and straightforward, though many experienced traders may not have heard of it. Its lack of popularity among traders may have more to do with its rarity than its actual utility.

The message behind the Marubozu pattern is simple: prices which trade strongly in one direction can often lead to a continuation and follow-through.

There are three different places within a larger trend where the Marubozu pattern may form:

There are times when a trend reverses slowly in an almost stealth-like manner. At such times, an important news announcement may add fuel to the new trend as prices move strongly in one direction. In a case like this, a Marubozu candlestick pattern may be found early in the new trend.

Marubozu Pattern in the Middle of a Trend

, as a trend reverses, a battle may be waged in which the followers of the old trend are still hopeful it will continue. At the same time, traders who believe a new trend has started cast their vote via their trades. Initially, there’s a struggle, and then a flashpoint appears when the new trend breaks out.

During this breakout, the old trend’s followers have relinquished control. Everyone is on board with the new trend. Because the supply of buyers and sellers is lopsided, the trend takes off with strength. Marubozu candle patterns are frequently found during the middle of market trends.

A Blow-off Top may House a Marubozu Pattern

A blow-off top is the end of a mature rally, with price appreciation accelerating in a last gasp of fear of missing out (FOMO). 

By the end of the trend, the whales have exited, and the market reverses course shortly thereafter. 

What Does a Marubozu Candle Pattern Look Like?

A Japanese candlestick generally has two portions to its formation: the body and the wicks, also called shadows.

Protruding from either end of the body is a small stick called the wick or shadow.

What makes the Marubozu formation unique is that it’s missing shadows, or wicks. This gives the pattern a big rectangular block look.

The color of the Marubozu is the sole differentiator between bullish and bearish.

Identifying the Marubozu Candlestick Pattern

The Marubozu pattern indicates that a cryptocurrency has been trading strongly in one direction, as it opens at one extreme and then closes at the other. Prices have not traded outside of the opening and closing price extremes, implying that a strong directional trade has been taking place.

To distinguish a bullish Marubozu pattern from a bearish one, simply consider the color of the candlestick’s body.

The bullish Marubozu candles pattern implies that the price opened at the lowest point and closed at the highest point. This happened because buyers were in control of the price for the duration of the candle’s construction.

The color of a bullish Marubozu will be green, blue or white.

The bearish Marubozu pattern, formed when prices open at the high price for the candle’s formation and close at the lowest point. In essence, the open is the same price as the high, and the close is the same price as the low.

The color of the bearish Marubozu candlestick will be either red or black.

Using the Marubozu Candle to Trade Crypto

As mentioned, although Marubozu candle formations can be found on any time frame chart, they are fairly rare. When they do appear, the one-candle formation with no wicks suggests strength in the current trend. The pattern signals it could be either a strong uptrend, or a strong downtrend.

The bullish Marubozu forms when the price trades swiftly to the upside. The candle’s open forms the low price, and the Marubozu closes the candle at the high price. 

Once you spot the Marubozu pattern, consider the part of the larger trend in which it has formed.

In the 2-hour Bitcoin chart above, the bullish Marubozu appears right after another strong bullish candlestick, which loosely resembles a bullish Marubozu. This double combination appears toward the beginning of a new trend, which suggests that the trend is just starting.

You’ll rarely see an isolated Marubozu running against the main trend all by itself. So when the bullish Marubozu appears, the trader can expect more upside potential.

As a result, opening the trade on the next candle — while placing a stop loss just below the swing low — is one way to trade the bullish Marubozu.

The bearish Marubozu is created when the candle opens near the high opening price and closes on the low. This candle suggests a strong downward trend has been in force, leaving behind a big red or black candle with no wicks.

Shortly after Bitcoin topped in April 2021, the cryptocurrency market began to correct lower.

On April 15, the Ethereum 1-hour chart above carves a bearish Marubozu candle pattern, suggesting a strong downtrend (bearish trend). When we look at the price action unfolding prior to this candle pattern, we can see that the market is already correcting lower.

As a result, the bearish Marubozu appears in the middle of the trend, when the bulls are giving up and market participants are turning bearish.

When the bearish Marubozu appears toward the beginning or middle of a trend, the best way to trade it is by opening on the next candle and placing a stop loss just beyond the recent swing high.

With the benefit of hindsight, we can see how this bearish Marubozu is just a small piece of the larger bear trend that unfolded around June.

Indicators to Confirm the Marubozu Candlestick Pattern

When analyzing Japanese candlestick patterns, it’s best to view them within the context of larger trends, rather than in isolation.

For example, it’s best if a bullish Marubozu candle pattern forms shortly after a bounce higher from a support level like a 

Going back to the 2-hour Bitcoin example above, the price bounces higher off of the 200-period simple moving average on the chart. This bullish bounce from an important support level indicates the bull trend is still in force.

Sure enough, as the bullish Marubozu candle pattern develops, the price action is breaking above a shorter-term resistance trend line. Multiple pieces of confirmation exist between the bullish bounce at support and the bullish breakout above resistance. These are signs of the larger bull rally that may carry significantly higher.

It’s rare for the Marubozu candle formation to develop right at levels of support or resistance because Marubozu tends to be a continuation pattern. Therefore, look for prices that have recently bounced higher from support to carve a bullish Marubozu, or fall from resistance and then form a bearish Marubozu.

One thing that’s clear when a Marubozu candle pattern is spotted is that a strong trend has powered prices to the high or low extreme of the time period. Generally, this type of price action implies the continuation of a trend.

However, this price action is backward-looking, and the location of the Marubozu within the larger trend is critical to its potential rewards. For example, if the Marubozu appears toward the end of the trend in a blow-off, it actually sets the stage for a trend reversal, not a continuation.

If the Marubozu appears in the middle of the trend, a trading opportunity does exist. However, that opportunity will not be as rewarding as if the Marubozu had appeared at the beginning of a new trend.

So, the location of the Marubozu within the context of the larger trend is important for generating positive signals. Stay away from Marubozu formations toward the end of mature trends — unless you’re on the watch for the appearance of a reversal.

Marubozu vs. Engulfing Pattern: The Differences

The Marubozu candle pattern looks similar to the engulfing pattern. For example, both patterns typically have big and tall candles involved in their creation.

However, there are a couple of important differences to help you distinguish between the two formations.

First, the Marubozu is a one-candle formation, whereas the engulfing is a two-candle formation. Is it possible for the second candle of the bullish engulfing to be a bullish Marubozu within the crypto market? In theory, it is possible. Practically speaking, though, it’s not likely.

 is useful because it gaps to a new low, thereby creating a body that engulfs that of the previous candlestick. In theory, this could happen in crypto, but it would be extremely rare. This is because crypto trades 24 hours per day, 7 days a week. Continuous trading is taking place, which means continuous pricing.

For crypto to gap, there needs to be an event that creates confusion in the market, such as an important news story which causes liquidity to be pulled. In essence, the main liquidity providers would become concerned or confused, pulling back their offerings. This type of scenario would need to occur when an old candle has closed and a new candle is opening. As a result, this is an extremely rare occurrence.

Additionally, the engulfing candle is a reversal pattern. The Marubozu tends to be a continuation pattern, unless it appears at the end of a trend.

Therefore, in theory, it’s possible that the Marubozu could be the second candle of an engulfing pattern. However, this is highly unlikely.

The Marubozu candlestick pattern is generally great to assess the 

 as it signals a continuation of a current trend. When this pattern is spotted on a crypto chart, especially if it’s early within a new trend, the buying pressure pushes the cryptocurrency’s price, thus continuing to trade higher.

If the Marubozu is spotted toward the end of a mature trend, then beware: it could signal a reversal lurking nearby. Though the Marubozu formation is easy to identify, its usefulness is contingent upon analyzing its location within a larger trend. While this technical indicator can provide analytical insights about the future direction of a price, trading cryptocurrencies require you to be vigilant about the broad perspective of the market. The use of 

 with a combination of other technical indicators is highly recommended.

Candlestick Patterns Professional Traders Use

 – A curated list of candlestick patterns most frequently used by traders

How to Use Marubozu Candlestick Pattern to Predict the Trend Direction

Compete for 2,500 USDT Every Week

How to Use Marubozu Candlestick Pattern to Predict the Trend Direction

Grab Up to 5,000 USDT in Rewards

Compete for 2,500 USDT Every Week

Grab Up to 5,000 USDT in Rewards