On the daily chart of Bitcoin, we can see the formation of a Gartley Pattern, one of the most well-known Harmonic Patterns. These patterns rely on Fibonacci Ratios and are typically used to anticipate a trend reversal after a strong move either upward or downward.
Recently, Bitcoin has reached a very important resistance zone between $120,000 – $121,000. The completion of the Gartley pattern in this zone increases the likelihood of a bearish correction.
Factors supporting a downside move:
Harmonic Pattern – Gartley: Completion at resistance provides a reversal signal.
PRZ (Potential Reversal Zone): Located near $120K.
Technical Indicators:
RSI shows overbought conditions, suggesting buying pressure is weakening.
MACD is close to a bearish crossover, another negative signal.
Volume: Buying volume is declining at recent highs, which often signals a distribution phase by large players and institutions.
📉 Support Levels:
The main target for the pattern is $105,500, a strong support level where price previously rebounded.
🎯 Trading Plan (Expected Scenario):
Potential Entry Zone: Between $120,500 – $121,000 (near resistance).
Targets (Take Profit):
TP1 = $114,000
TP2 = $110,200
TP3 = $105,500 (main target).
Stop Loss: Daily close above $121,800.
✅ Conclusion:
Bitcoin is currently at a very critical level, with the Gartley pattern completing right at resistance, combined with weakening technical indicators and declining volume. This supports the idea that the market may enter a short-to-medium term bearish correction with gradual downside targets ending near $105,500.
At the current zone, this is not considered a safe buying opportunity. Instead, it looks more like a selling opportunity or a case for waiting until price corrects to more favorable levels.
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⚠️ Please note:
This is not financial advice – I’m only sharing my personal trades.
Always do your own research before taking action.
Best of luck 🌹
