Bitcoin (BTC) closed July higher up $41,000 in a "bullish engulfing" candle that dramatically upends its previous downtrend.

In a tweet on Aug. 1, investor and entrepreneur Alistair Milne joined many in celebrating a classic return to form for BTC price activeness.

Bitcoin refuses to flip bearish

After seeing three monthly red candles in a row, BTC/USD held onto late gains to mail service a monthly shut that few had predictable.

Despite the dip to $29,000, bears failed to stay in the commuter's seat as July drew to a close as resistance levels fell and sentiment improved.

"Bullish engulfing on the monthly chart for Bitcoin," Milne summarized.

A bullish engulfing pattern is a chart pattern that forms when a pocket-size carmine candle is followed past a large light-green candle — i.eastward., July, the body of which completely covers or engulfs the body of the previous candle (June).

BTC/USD 1-month candle chart (Bitstamp). Source: TradingView

The move up — and its staying power — has been then surprising that even seasoned hodlers appear dislocated nearly what to do next.

On-concatenation data shows that some long-term holders (LTH) are in fact selling as BTC/USD rises, something that analyst Lex Moskovski believes corresponds to the "atheism" stage of a classic marketplace cycle.

Moskovski highlighted the long-term holder spent output profit ratio indicator (LTH-SOPR), which this weekend hit its lowest levels in 2022.

SOPR looks at the value of coins moved in a particular time menses to become an impression of profitability of coins existence sold. A downtrend toward the neutral i value, Glassnode explained, suggests that profitability among the coins in question is low.

"Some long-term bitcoin holders are selling into this bounce with minimal profit as indicated by LTH-SOPR hitting this year's low for two days straight," Moskovski commented.

"This is one of the reasons we're still at 41k. Disbelief."
Bitcoin LTH-SOPR annotated nautical chart. Source: Lex Moskovski/Twitter

"Like clockwork"

Bulls, meanwhile, continue to look for triggers that could transport BTC/USD by $42,000 resistance for good, this having seen two tests in the past 24 hours.

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Across at that place, as Cointelegraph noted, little lies in the way until $45,000 and $47,000.

Equally enthusiastic for upside on Saturday was PlanB, the creator of the stock-to-catamenia price model family, who described Bitcoin's July close as being a recovery "like clockwork."

Stock-to-flow, while currently demanding a Bitcoin price of about $100,000, remains valid, with PlanB giving a minimum August close requirement of $47,000.