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Cryptocurrency News Articles
Bitcoin (BTC) is Setting Up a Bearish Shark Harmonic Pattern
Apr 15, 2025 at 02:45 am
Among these, the Shark Harmonic is a powerful setup that often appears after a period of market consolidation.
Bitcoin (BTC) price is currently showing a structure that closely resembles the Shark Harmonic, a pattern that is known for offering final expansion opportunities before a final leg plays out.
Despite being classified as a bearish pattern, the Shark can offer bullish setups as it expands. This presents day traders with an interesting opportunity, especially considering that Bitcoin is approaching a pattern completion that could take it to new highs.
Shark Provides Final Expansion Opportunities Ahead of Bearish Final Leg
Harmonic patterns are advanced trading structures that rely on Fibonacci levels and geometric price formations. Among these, the Shark is a powerful setup that often appears after a period of market consolidation.
The pattern is defined by four legs: X, A, B, C, and D (or sometimes labeled simply XA, AB, and CD). Each leg is defined by a Fibonacci measurement relative to the previous leg. For example, leg A is typically a 0.382 retracement of leg X, while leg B is a 1.13 extension of leg A.
In Bitcoin’s current setup, price is likely approaching the completion of leg C, which often tops out near the 0.886 or 1.13 Fibonacci extension of the XA leg.
What’s unique about this case is that the projected leg C aligns not only with these Fibonacci zones but also with single print areas and auto block support, giving the pattern additional weight.
This pattern is quickly becoming one to watch as Bitcoin approaches key confluences and Fibonacci zones that could decide the next move.
The Importance of Confluence in Harmonic Trading
Confluence is everything in harmonic trading. In this case, the potential completion of leg C is supported by a 0.618 retracement, a key auto block support zone, and a single print area—a trifecta of powerful technical levels.
A breakout above the dynamic trendline overhead would further confirm bullish expansion into the leg C target zone.
Until that happens, traders can expect continued consolidation, ideal for range-bound or scalping strategies.
How to Trade This Pattern
The most strategic entry comes after a swing low is taken out, forming a swing failure pattern (SFP) setup. This offers a clear invalidation level and a clean entry signal.
From there, traders can enter long positions targeting the all-time high region—holding until signs of exhaustion emerge near the leg C top.
However, traders should be mindful that this pattern is still developing, and there are no guarantees that it will play out as expected.
Patience is key, especially as price could remain in low-volume consolidation for some time before breaking out or retesting support.
Ultimately, this analysis provides a framework for approaching the market, but traders should use their own discretion and risk management techniques when making trading decisions.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
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