Bitcoin New Bullish Pattern! $120K Soon?

A bullish harmonic pattern is a technical analysis tool used in trading to predict a reversal from a downtrend to an uptrend, based on geometric price structures and Fibonacci ratios.

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Today’s report will include:

  • Updated Technical Analysis

  • Other key market developments

  • Market Psychology

  • Trading Tools

Bitcoin Harmonic Pattern 📈 

In Today’s analysis -Bitcoin- rejecting from high time-frame resistance that being the .618 Fibonacci - further sideways price action around this region adds empathizes on a bullish Gartley harmonic pattern.


A bullish harmonic pattern is a technical analysis tool used in trading to predict a reversal from a downtrend to an uptrend, based on geometric price structures and Fibonacci ratios. Here's a brief rundown:

Structure:

  • X to A: The initial price move.

  • A to B: A retracement of XA, often at 0.618 or 0.786.

  • B to C: Movement in the direction of XA but not exceeding A.

  • C to D: The final leg where the price should hit a Fibonacci level relative to XA or BC extensions like 1.27, 1.618, etc.

Types of Bullish Harmonic Patterns:

  • Gartley: B at 0.618 of XA, D at 0.786 of XA and 1.27 of BC.

  • Bat: B at 0.382 to 0.50 of XA, D at 1.618 of BC and 0.886 of XA.

  • Butterfly: B at 0.786 of XA, D at 1.618 of XA and 2.618 of BC.

  • Crab: B at 0.382 to 0.618 of XA, D can extend to 3.618 of BC.

  • Cypher: Unique with specific Fibonacci ratios, especially on BC.

Trading Implications:

  • Entry Point: Traders look to enter a long position at point D when price shows signs of reversing.

  • Stop Loss: Often set just below D to manage risk.

  • Take Profit: Using Fibonacci retracements from the XD move or significant resistance levels.

Point to Consider:

  • Confirmation: Look for additional signs like bullish candlestick patterns or confirming indicators (e.g., MACD, RSI) at D.

  • Accuracy: Due to market noise, these patterns should complement other analysis methods.

  • Tools: While software can detect these patterns, manual verification enhances accuracy.

The current morphing pattern on Bitcoin suggests a potential upwards price movement in the near future. A base needs to form before the projection of the pattern becomes more probable, the overall target will be $120K per Bitcoin.

Hope this analysis helps.

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