Date: Sun, May 25, 2025 | 07:05 PM GMT
The cryptocurrency market is cooling off slightly after a month of strong gains. Bitcoin (BTC) hit a fresh all-time high of $111,970 before retracing to $107,000, while Ethereum (ETH) touched $2,700 and is now hovering around $2,500.
With this mini pullback, BTC is trading in the red today after a 12% monthly rally, and now a potential emerging technical structure on the lower time frame could be the key to decoding its next move.
Harmonic Pattern Signals More Upside
On the 1-hour timeframe, BTC is forming a Bearish Cypher harmonic pattern — a technical setup that identifies high-probability reversal zones once the final leg, known as CD, completes. Until that point, the pattern typically supports short-term bullish momentum.
The pattern began on May 22, when BTC faced rejection near $111,959 (point X), triggering a sharp sell-off. The price dropped over 5%, bottoming out near $106,497 (point C) on May 25.
Bitcoin (BTC) 1H Chart/Coinsprobe (Source: Tradingview)
Since then, BTC has been rebounding, forming the CD leg of the Cypher. If the pattern completes, BTC could rally towards point D, projected near $110,790 — which corresponds to the 78.6% Fibonacci retracement of the XC leg. From the current price near $107,400, that suggests a potential 3.16% upside.
What’s Next for BTC?
The region around $110,790 is a critical zone to watch. As per harmonic pattern theory, this is a traditional reversal zone, where bearish pressure could return. If BTC breaks this resistance decisively, bulls may aim for a retest of the recent all-time high at $111,959 (point X) — an additional 4.16% potential move from current levels.
However, if the price struggles to break above $110,790, it could signal a short-term top. In such a scenario, BTC might enter a consolidation phase or see mild profit-taking before attempting another leg higher.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
