Bitcoin is currently forming a Cypher Harmonic Pattern on the weekly timeframe — a rare but reliable reversal setup that often appears near exhaustion phases of a macro move.
This structure aligns with potential mid-cycle correction before continuation, providing a clear roadmap for both bulls and bears.
Cypher Harmonic Structure
The Cypher pattern follows strict Fibonacci ratios:
XA leg: The initial impulsive wave defining trend direction.
AB retracement: Retraces between 0.382–0.618 of XA (here ~0.58).
BC extension: Expands to 1.13–1.414 of AB (here ~1.27).
CD completion: Extends to 0.786 retracement of the XC leg — this defines the potential reversal zone (PRZ).
In this setup:
X → A → B → C structure is complete.
Price is now heading toward point D, projected between $50,000–$65,000, the ideal PRZ for this Cypher.
The highlighted green box marks this completion and potential accumulation zone.
Technical Confluence
Weekly RSI Divergence
Bearish divergence appeared between point B and C — confirming a loss of upward momentum.
RSI now approaching mid-levels (40–45), aligning with a healthy reset within a broader bull structure.
Volume and Momentum Shift
Declining bullish volume since the C-leg high, typical before harmonic completion.
Short-term bearish bias persists until D-zone validation.
Fibonacci and Structure Alignment
The 0.786 retracement of XC overlaps with historical weekly demand.
This overlap reinforces the D-zone as a strong potential reversal point.
Scenario Planning
Base Case (Cypher Completion):
BTC retraces toward $55K–$60K (D-leg).
Price stabilizes within PRZ and confirms structure with bullish divergence on RSI.
Potential upside reaction back toward $90K+ over the next few quarters.
Alternative Case (Invalidation):
A weekly close below $50K would invalidate the Cypher completion and shift bias to extended correction territory.
Trading Considerations
Aggressive Entry: Scale into longs within the PRZ ($55K–$60K) once momentum indicators show exhaustion.
Conservative Entry: Wait for bullish confirmation on higher timeframes (weekly close above prior swing low).
Invalidation: Close below $50K zone.
Risk management is crucial — the Cypher is high-probability but not infallible.
Conclusion
The Cypher Harmonic Pattern suggests BTC may be in the latter stages of a mid-cycle correction.
If historical structure repeats, the D-point could serve as the macro reaccumulation zone before the next impulsive leg of the bull cycle.
Bias: Short-Term Bearish → Mid-Term Bullish
Pattern Type: Cypher Harmonic
Key Zone: $50K – $65K
Invalidation: Weekly Close < $50K
This structure aligns with potential mid-cycle correction before continuation, providing a clear roadmap for both bulls and bears.
Cypher Harmonic Structure
The Cypher pattern follows strict Fibonacci ratios:
XA leg: The initial impulsive wave defining trend direction.
AB retracement: Retraces between 0.382–0.618 of XA (here ~0.58).
BC extension: Expands to 1.13–1.414 of AB (here ~1.27).
CD completion: Extends to 0.786 retracement of the XC leg — this defines the potential reversal zone (PRZ).
In this setup:
X → A → B → C structure is complete.
Price is now heading toward point D, projected between $50,000–$65,000, the ideal PRZ for this Cypher.
The highlighted green box marks this completion and potential accumulation zone.
Technical Confluence
Weekly RSI Divergence
Bearish divergence appeared between point B and C — confirming a loss of upward momentum.
RSI now approaching mid-levels (40–45), aligning with a healthy reset within a broader bull structure.
Volume and Momentum Shift
Declining bullish volume since the C-leg high, typical before harmonic completion.
Short-term bearish bias persists until D-zone validation.
Fibonacci and Structure Alignment
The 0.786 retracement of XC overlaps with historical weekly demand.
This overlap reinforces the D-zone as a strong potential reversal point.
Scenario Planning
Base Case (Cypher Completion):
BTC retraces toward $55K–$60K (D-leg).
Price stabilizes within PRZ and confirms structure with bullish divergence on RSI.
Potential upside reaction back toward $90K+ over the next few quarters.
Alternative Case (Invalidation):
A weekly close below $50K would invalidate the Cypher completion and shift bias to extended correction territory.
Trading Considerations
Aggressive Entry: Scale into longs within the PRZ ($55K–$60K) once momentum indicators show exhaustion.
Conservative Entry: Wait for bullish confirmation on higher timeframes (weekly close above prior swing low).
Invalidation: Close below $50K zone.
Risk management is crucial — the Cypher is high-probability but not infallible.
Conclusion
The Cypher Harmonic Pattern suggests BTC may be in the latter stages of a mid-cycle correction.
If historical structure repeats, the D-point could serve as the macro reaccumulation zone before the next impulsive leg of the bull cycle.
Bias: Short-Term Bearish → Mid-Term Bullish
Pattern Type: Cypher Harmonic
Key Zone: $50K – $65K
Invalidation: Weekly Close < $50K
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Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.