Bitcoin Butterfly Harmonic Pattern – Multi-Fibonacci Confluence!

A potential Bullish Butterfly Harmonic Pattern is developing, with point D yet to be completed. If price action reaches the harmonic completion zone, it could present a high-probability long opportunity near a stacked Fibonacci confluence zone.

The D-leg aligns beautifully with the 0.382 Fibonacci retracement of the entire 5-wave Elliott structure from the macro low at $15,476 to the all-time high of $109,588. A level that has acted as key support in the past. Multiple additional Fibonacci confirmations further strengthen this potential bullish reversal zone.

Pattern Breakdown – Bullish Butterfly Formation

The Butterfly Harmonic Pattern is a structured reversal setup, often forming at market extremes before trend shifts.

1️⃣ XA Leg – The initial impulse.
2️⃣ AB Leg – A retracement of 0.786 – 0.886 Fibonacci of XA.
3️⃣ BC Leg – A counter-trend move retracing 0.382 – 0.886 of AB.
4️⃣ CD Leg – The final move, typically extending 1.618 – 2.618 Fibonacci of XA.

📍 In this developing setup:
✅ B-point retraces 0.806 of XA → Butterfly pattern remains valid.
✅ C-point retraces 0.838 of AB → Strengthening structural alignment.
✅ D-leg projection target 1.695 XA extension, converging with multiple key Fibonacci levels.

Fibonacci Confluence – Strong Potential Reversal Zone ($73,783.52 - $73,157)
As price moves toward potential point D, multiple Fibonacci levels create a high-probability reversal area:

• 0.382 Fibonacci retracement of the entire 5-wave Elliott structure ($73,637.22)
  
• Negative -0.236 Fibonacci retracement at $73,251.43
  
• Negative -0.618 Fibonacci retracement at $73,157
  
• Trend-based Fibonacci Extension 1:1 at $73,783.52
  

📍 Potential Reversal Zone: Between $73,783.52 and $73,157

Trade Setup – Waiting for Confirmation

Since point D has not completed yet, we should wait for bullish confirmation signals in the reversal zone before entering.

• Entry Zone (if price reaches D): Between $73,783.52 and $73,157
  
• Stop Loss: Below $73,157 (D-point invalidation)
  
• Take Profit: B-point resistance
  
• Risk-to-Reward (R:R): 3:1 if TP at B-point
  

⚠️ Key Reminder:

🚨 The pattern is not confirmed yet. A reaction in the potential reversal zone (e.g., bullish divergences, strong buying pressure, or reversal candlesticks) would strengthen the case for a long position.

Are you watching this level for a potential reaction? Will point D complete? Let’s discuss in the comments! 🚀🔥