Despite a challenging start to the year, Bitcoin is showing signs of renewed vigour. A major chart pattern is emerging on the daily chart, indicating a potential continuation of the rally towards $100,000 and beyond.
The cryptocurrency market is experiencing a resurgence this week. The Bitcoin (BTC), the central driver of the ecosystem, is attracting attention with a +12% increase over the past week.
In this bullish context, a specific technical configuration — a Harmonic “Cypher” pattern — is emerging on the daily chart of BTC. This signal could anticipate a continuation of the rally towards a symbolic level: $100,000… or even beyond.
A Harmonic pattern is a precise chart analysis tool based on Fibonacci retracement ratios. In this case, it’s a Cypher, usually interpreted as a continuation signal, despite its structure resembling a reversal.
On the daily Heikin Ashi candlestick chart, the following configuration stands out:
Despite a slight deviation on the Fibonacci extension (Point C < 1.27 ideally), the pattern remains valid, offering interesting short-term upside potential. Since Point C, BTC has already surged by over 25%, currently trading around $94,269.
If the Cypher pattern confirms, the next major target to watch is Point D at $102,546. This would represent a nearly +9% increase from the current level. Before that, an intermediate hurdle stands at $97,043, corresponding to the 61.8% Fibonacci retracement of impulse XC — a critical zone monitored by short-term traders.
Additionally, this formation also displays a “W” pattern on Bitcoin, a pattern widely used by traders. As a result, many traders might take profits anticipating a retracement after this “W”.
Key levels to monitor:
Although the indicators have not been detailed on the chart, several points confirm the current momentum:
The trend is still dominated by the bulls, supported by more stable macroeconomic fundamentals and reduced selling pressure post-halving.
Institutional investors, often cautious around psychological levels (like $100,000), may take an active stance if the $97,000 resistance is breached with volume.
As long as the Harmonic pattern remains valid:
Analyst Zoral, however, warns of a potential distribution between $99,000 and $94,000. Indeed, Bitcoin has not retraced to the demand zone at $73,300. According to him, even though it “is not mandatory to return there,” there is a much lower probability of reaching new highs instead of making a new lower low below $74,400.
In conclusion, with this ongoing validation of the Harmonic Cypher pattern, Bitcoin seems well positioned to extend its bullish cycle. If intermediate resistances give way, the market could soon re-test (and potentially exceed) the historical milestone of $100,000.
A Harmonic structure is a powerful tool but offers no guarantees. Monitoring potential Bitcoin distribution in the coming days or weeks will be crucial.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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