The newly confirmed bearish shark harmonic pattern has been formed on Bitcoin’s daytime charts and refers to a potential retreat in the short term. Bitcoin may be set up for a healthy pullback to a deeper volume support zone, as value areas show pressure and volume metrics indicate a lack of strong buyer commitment.
Bitcoin (BTC)’s latest move has brought it to technically important areas, but not without warning signs. Bearish shark harmonics have emerged, suggesting a possible reversal following the recent grind to local highs. When price tests value areas (VAH), a significant inflection point is formed. If Bitcoin loses this level, the next logical target will include a Control Point (POC) and a 0.618 Fibonacci Retracement, both providing a strong confluence as a support zone.
Important technical points
- Bearish shark harmonic confirmed: This pattern indicates the possibility of price reversal or retracement from current levels.
- Important support zones: The point of control and 0.618 Fibonacci are below the current price and serve as a logical target if the VAH is lost.
- Volume participation remains average: Recent movements lack the explosive profile of short squeezes, raising questions about sustainability.
BTCUSDT (1H) Chart, Source: TradingView
Bearish shark harmonics add structure to current market setups. This particular pattern usually forms at the end of an extensive correction movement, often preceding a short-term pullback. Bitcoin is currently in its first major hurdle: the value area. If not held above this level, it can trigger a return to the control point representing the highest volume node within the visible range.
Further failures open a path towards the lower value area, suggesting a full rotation within the current trading range.
You might like it too: Ethereum is a powerful scale, but Light Chain AI leads developer pioneering first design
Volume behavior supports this retracement paper. Unlike previous surges, which feature short squeezes, the current gatherings are unfolding at average volumes without any indication of aggressive forced purchases. This weakens the bullish case and opens the door to the long squeeze. This is a slow rewind of long positions that forces traders to come out as they descend towards lower support levels.
What to expect from future price action
All eyes are now in Va. A critical failure from this level confirms the bear harmonics and signals controlled movement into deeper support areas. Such retracements are not only technically effective, but also constructive, allowing Bitcoin to reset within its current range before attempting another breakout.
read more: Ethereum price forecast: Analysts say it’s out of reach of $4,000 as institutions diversify from Bitcoin
