Update - September 2, 2024
The BTC price pattern remains valid and presents a trading opportunity within specific technical parameters. Today, the market may approach the 121 and 200-period moving averages, regions that provide a safe trading zone. This safe zone is crucial as it represents a price range where the asset tends to find support, reducing the likelihood of abrupt swings and offering greater stability for trading decisions.
The BTC/USDT pair recently formed a Head and Shoulders (H&S) pattern, known for indicating potential trend changes and high volatility. This pattern, being one of the most challenging to operate within harmonic analysis, requires special attention. I have identified specific points that could trigger a "dump" (sharp sell-off) and also a potential reversal point.
For a market reversal to take hold, it is essential for the price to return to the safe trading zone, meaning it must move above the 121 and 200-period moving averages. If the decline continues, breaking the 57,867.95 level will be crucial.
Additionally, in the 54,453 region, there is a critical level for liquidating long positions, where major market players and exchanges might choose to take profits. This point is viewed as the midpoint of the current price structure.
The maximum limit projected by the pattern points to a significant liquidation of $1.89 billion in the 51,163 region. At this level, it is likely that major players will attempt to stabilize the market, given the high volume of long position liquidations.
