Bitcoin has surged 26.81 percent over the past week, climbing from the $60,000 range to the high $70,000s. Analyst Ali Charts said the weekly spike resembles rebound patterns seen at the end of past bear markets. CoinPost, a blockchain outlet, reported the analysis on Sunday.

According to figures presented by Ali Charts, bitcoin rose over the past week from about $62,700 to around $79,500. He judged the move could be read as a signal of a shift in market structure rather than a simple short-term rebound.

A short squeeze was cited as a key backdrop. He saw such sharp rises as often starting with forced liquidations of short positions. As prices begin to climb, bearish traders build more new short positions, and the subsequent forced unwinding of those positions further accelerates the rise, he explained.

Ali Charts said the current move resembles two previous episodes. In 2019, bitcoin posted a weekly gain of 31.98 percent, and the move was taken as a signal that the bear market was ending. In January 2023, he said, bitcoin rose 24.90 percent in a week at a time when pessimism was strong after FTX's bankruptcy, undermining many bearish scenarios.

Those two cases were also compared with the latest weekly surge in that a short squeeze served as the starting point for the rebound. He said a pattern repeated in which market participants bet on further declines during the price rise, only to amplify liquidation pressure and expand gains.

Ali Charts also focused on the fact that the surge came as many investors were trying to gauge a bottom based on the idea of a four-year cycle in cryptocurrencies. "If history repeats, this kind of strong weekly reversal could be an early signal of entry into a new bull cycle," he said.

He did not present the analysis as a definitive outlook. He said the interpretation is based on comparisons with past cases, and it cannot be concluded that the same pattern will be reproduced exactly.

That leaves the market's next key question as whether the weekly surge will end as temporary short covering or become the start of a trend reversal. In particular, for the rebound to take hold as a signal of a bear-market end as in the past, it has become important whether price action is sustained further after a strong weekly rise.