Bearish Bat Harmonic Setting up on Bitcoin
Bitcoin is forming a perfect bat harmonic pattern with a precise 50% retracement of the XA leg.
- Currently, the price is finding resistance at the R1 trend line and it has also not surprassed Point B of the harmonic pattern yet.
- Point B MUST be passed first and then this pattern will be set into motion, otherwise a failure to break above will most likely invalidate it.
The Price Reversal Zone (PRZ) is calculated as a confluence of the 0.886 Fibonacci retracement of XA leg, 1.272AB=CD movement level and 1.618 BC inversion level.
Consequently the R3 resistance trend line above in addition to the 0.5 fibonacci retracement of 11.7k to 6.4k both form confluence at the PRZ.
Both targets for this bearish bat are determined by the .382 and .618 fib retracement of the AD leg in green on the chart.
Trend line Key
R1 = Resistance trend line formed from Dec 2017 high (19.7k) through 9.7k and 9.5k (April)
R3 = Support trend line formed from 8.5k (April) through recent reaction lows
S3 = Support trend line formed from reaction lows starting from April 13 through present.
- Currently, the price is finding resistance at the R1 trend line and it has also not surprassed Point B of the harmonic pattern yet.
- Point B MUST be passed first and then this pattern will be set into motion, otherwise a failure to break above will most likely invalidate it.
The Price Reversal Zone (PRZ) is calculated as a confluence of the 0.886 Fibonacci retracement of XA leg, 1.272AB=CD movement level and 1.618 BC inversion level.
Consequently the R3 resistance trend line above in addition to the 0.5 fibonacci retracement of 11.7k to 6.4k both form confluence at the PRZ.
Both targets for this bearish bat are determined by the .382 and .618 fib retracement of the AD leg in green on the chart.
Trend line Key
R1 = Resistance trend line formed from Dec 2017 high (19.7k) through 9.7k and 9.5k (April)
R3 = Support trend line formed from 8.5k (April) through recent reaction lows
S3 = Support trend line formed from reaction lows starting from April 13 through present.
Comment:
Just noticed this fractal a few minutes ago, seems to line up with this bat harmonic pattern pretty nicely and volumes for yesterday's pump are similar to the volume on this fractal.
Comment:
Price is still struggling to get past Point B of this harmonic. Remember this pattern is invalid if we cannot move past Point B. The R1 trend line is also causing resistance at this region. Keep a close eye on both
Comment:
Not looking very likely anymore after that drop. I will give it a little more time but again if we can't get past 8.8k soon at Point B then this will not play out