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
إخلاء المسؤولية
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
إخلاء المسؤولية
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.