Bitcoin Faces Potential Short-Term Pullback as Bearish Shark Pattern Forms
A bearish shark harmonic pattern has emerged on Bitcoin’s intraday chart, signaling a possible price reversal.This pattern suggests a retracement from current levels, as the value area high (VAH) is under pressure.
Key support levels include the point of control (POC) and the 0.618 Fibonacci retracement. these zones could act as strong support if the VAH is breached.
Volume metrics indicate average participation, lacking the explosive profile of a short squeeze. this suggests the recent rally may not be sustainable, increasing the likelihood of a long squeeze. A long squeeze is a slow unwind of long positions,forcing traders to exit as prices dip toward lower support levels.
What to expect next? The VAH is the critical level to watch. A decisive breakdown would confirm the bearish harmonic, leading to a controlled move into deeper support areas.This retracement would be technically valid and constructive, allowing bitcoin to reset within its current range before attempting another breakout.
- Bearish Shark Harmonic Confirmed: Indicates potential price reversal or retracement.
- Critical Support Zones: POC and 0.618 fibonacci act as logical targets if VAH is lost.
- Average Volume Participation: Recent move lacks explosive profile,raising doubts about sustainability.
For more insights, check the BTCUSDT (1H) Chart on TradingView. Traders should monitor the VAH closely. A breakdown could trigger a move toward the POC and 0.618 Fibonacci retracement.This setup is typical at the end of corrective moves and frequently enough precedes short-term pullbacks. If Bitcoin fails to hold above the VAH, it could return to the POC, the highest volume node in the visible range.
Volume behavior supports this retracement thesis. Unlike previous surges, the current rally has unfolded on average volume, without signs of aggressive buying. This weakens the bullish case and opens the door to a long squeeze,where traders slowly unwind long positions as prices dip.
Traders should keep an eye on the VAH. A decisive breakdown would confirm the bearish harmonic and signal a controlled move into deeper support areas. Such a retracement would be technically valid and constructive, allowing Bitcoin to reset within its current range before attempting another breakout.
