From Xi Candle to Trump Pump: Bitcoin’s Legendary Trading Signals

Explore Bitcoin’s most legendary trading signals, from the Xi candle to ‘Trump Pump’, and understand key chart patterns.

Introduction

Bitcoin’s trading history is punctuated by remarkable events, with significant chart patterns that have captivated traders worldwide. In this article, we explore five of the most historical trading signals and events on Bitcoin’s price chart, examining what caused them and how they appeared visually, plus their technical analysis terms and market implications.

What Are Trading Signals on a Crypto Chart?

Trading signals on a crypto chart are specific patterns or indicators used by traders trying to predict potential future price movements. These signals are derived from technical analysis and include various candlestick formations, chart patterns, and moving average crossovers. 

Five Historical Trading Signals on Bitcoin’s Chart

1. The Trump Pump (November 2016)

The ‘Trump Pump’ refers to the Bitcoin price spike observed around the 2016 US presidential election victory of Donald Trump. Investors, nervous about Trump’s unconventional economic policies, seemingly turned to Bitcoin as a hedge against uncertainty, driving the BTC price up from approximately US$700 to above $730 initially, sparking a broader rally.

Technical Term: Breakout
This signal is seen as a series of bullish candles indicating quick spikes as traders reacted in real-time to election results. In technical analysis, this sudden upward movement can be classified as a breakout, indicating a move beyond previously established support or resistance levels.

Market Interpretation
Bitcoin was viewed as an asset outside the traditional financial (TradFi) systems to hedge against volatility during political uncertainty.

2. The Xi Candle (October 2019)

Named after Chinese President Xi Jinping, the ‘Xi candle’ appeared on 25 October 2019, when Xi publicly supported blockchain technology. His remarks triggered one of Bitcoin’s biggest intraday moves, causing BTC to surge by over 40% in a single day — from around $7,500 to nearly $10,500.

Technical Term: God Candle
The Xi candle is easily recognisable — a long, bullish candlestick with minimal wicks, indicating strong buying pressure that dominated the trading session. In technical analysis, this powerful bullish pattern is commonly called a ‘God candle’, a colloquial term highlighting its extraordinary impact.

Market Interpretation
Traders interpreted Xi’s comments as China’s potential endorsement of cryptocurrencies, prompting immediate bullish sentiment and rapid price appreciation.

3. The COVID Crash (March 2020)

In March 2020, Bitcoin experienced its infamous ‘Black Thursday’, when global markets plunged amid COVID-19 fears. BTC’s price crashed by more than 50% in two days, bottoming near $3,800 after hovering around $8,000 earlier.

Technical Term: Capitulation Candle
This event is illustrated by a large bearish candlestick with extremely long downward wicks, reflecting panic selling and market-wide liquidation. Such patterns in technical analysis are termed ‘Capitulation candles’, signalling extreme panic selling and often marking market bottoms.

Market Interpretation
Initially viewed as catastrophic, the crash later underscored Bitcoin’s resilience, as it rapidly rebounded and set the stage for a bullish run that coincided with economic stimulus policies.

4. El Salvador Adoption Pump (September 2021)

In September 2021, El Salvador officially adopted Bitcoin as legal tender, a historic first for any country. Initially, the announcement sparked bullish momentum, driving BTC from around $43,000 to approximately $53,000.

Technical Term: Bullish Momentum
This was a noticeable bullish run with strong buying pressure preceding and immediately following El Salvador’s implementation date, followed by a corrective phase. The sustained upward movement is simply characterised as a bullish continuation pattern in technical analysis.

Market Interpretation
The market initially viewed the event positively as validation of Bitcoin’s mainstream viability, but later corrected due to profit-taking and concerns about the practical challenges of nationwide adoption.

5. The Trump Pump 2.0 (December 2024)

Following Donald Trump’s reelection and subsequent inauguration in January 2025, Bitcoin experienced another significant upward rally. Trump’s outspoken pro-crypto stance and rhetoric caused a rapid appreciation from $80,000 to an all-time high (ATH) of about $109,000 over a few weeks in late December 2024 to early January 2025.

Technical Term: Parabolic Move
Characterised by steep, consecutive bullish candles with very short pullbacks, this rapid price increase illustrates extreme bullish momentum fuelled by market enthusiasm and investor urgency.

Market Interpretation
The Trump Pump 2.0 reinforced Bitcoin’s reputation as a store of value, potentially driving adoption amongst institutional investors.

Top Crypto Trading Signals to Know

Below is a shortlist of 10 bullish and bearish trading signals to recognise on the BTC chart. For more, check out our articles on how to read crypto charts.

Top Five Bullish Trading Signals

1. Hammer

A bullish reversal candlestick pattern characterised by a small body and a long lower wick, appearing after a downtrend. It signals potential buyer strength and a reversal towards an uptrend.

2. Bullish Engulfing

A two-candlestick formation where a large bullish candle fully envelops the preceding smaller bearish candle. This indicates strong buying momentum, suggesting a bullish reversal.

3. Golden Cross

Occurs when a short-term moving average (e.g., 50-day) crosses above a long-term moving average (e.g., 200-day). It’s widely viewed as a powerful bullish indicator, signaling the start of a prolonged upward trend.

4. Ascending Triangle

A bullish chart pattern defined by a horizontal resistance level and rising support line, forming a triangle shape. Traders interpret a breakout above resistance as a strong bullish continuation signal.

5. Cup and Handle

A continuation pattern resembling a teacup followed by a short consolidation (‘handle’). It suggests a temporary pause before the market resumes its bullish trend upward.

Top Five Bearish Trading Signals

1. Shooting Star

A bearish reversal candlestick pattern featuring a small lower body and a long upper wick after an uptrend. It signifies rejection of higher prices and a possible trend reversal downward.

2. Bearish Engulfing

Consists of a larger bearish candle fully engulfing the preceding smaller bullish candle, showing strong selling pressure. It typically indicates a bearish reversal from an uptrend.

3. Death Cross

Occurs when a short-term moving average crosses below a long-term moving average. This signal suggests the start of a bearish phase or prolonged downtrend.

4. Descending Triangle

A bearish chart pattern identified by a flat horizontal support line and descending resistance line, forming a downward-sloping triangle. A break below support confirms bearish momentum, signalling further downward price action.

5. Head and Shoulders

A three-peak pattern consisting of two lower peaks (shoulders) on either side of a higher central peak (head). It indicates weakening bullish momentum and typically precedes a reversal to a bearish trend.

Conclusion

Bitcoin’s history is marked by significant trading signals that highlight the cryptocurrency’s responsiveness to global political, economic, and technological events. Understanding these chart patterns can help traders interpret market volatility and potential correlations.

Due Diligence and Do Your Own Research

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