Bitcoin price has made several attempts to break above $10,000 and revisit highs from last June. The crypto asset certainly has the momentum, however, if the rally stops and reverses at roughly $11,350, a bearish shark harmonic pattern will complete.
The bearish harmonic pattern could send Bitcoin price tumbling back to retest former lows before the asset takes off on a new bull run.
Great White Shark Harmonic Pattern Could Take Bitcoin Price Back to Lows
The leading cryptocurrency by market cap just had its halving, and the world is watching to see what happens next.
The stage is set for Bitcoin’s next bull run. Retail interest has returned following the Black Thursday collapse, and institutions are looking toward BTC as a hedge against inflation.
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The ultra scarce digital asset has been growing as the dollar weakens, and more stimulus money makes its way into cryptocurrencies and other hard assets.
The current rally in the leading cryptocurrency by market cap driven by halving hype may not be out of steam just yet. According to what appears to be a bearish shark harmonic pattern taking place across high timeframes on Bitcoin price charts, the rally could push to a high of $11,350.
But if it reverses there, the bearish shark harmonic pattern could potentially confirm and send Bitcoin price down to retest support below.
For the pattern to become active, however, Bitcoin price must first breach $10,500. Confirmation could push the first-ever cryptocurrency to test any of the many fib levels below.
— Moe (@Moe_mentum_) May 18, 2020
Should Crypto Investors Fear the Bearish Harmonic Pattern?
Crypto investors and traders are likely well-versed at this point in common technical analysis terminology. If you’ve been in this market for some time, you’ve likely read about triangles, wedges, and head and shoulders formation.
Harmonic patterns, according to Investopedia, “take geometric price patterns to the next level by utilizing Fibonacci numbers to define precise turning points.”
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Harmonic patterns are often named after animals, such as the bat, shark, crab, and butterfly. These patterns can act bullish or bearish, depending on which direction the patterns form.
A bearish shark confirming would spell a strong reversal in Bitcoin price potentially taking it back down to prices traded at post-Black Thursday.
Given Bitcoin’s recent bullish momentum, any future crashes could end up being the last dip-buying opportunity ever. If the pattern confirms, do as a shark would do and feed on any blood in the streets by buying up Bitcoin at the lowest prices possible.
Featured image from Pixabay