Bitcoin Creates Mirror Harmonic Pattern

Harmonic Patterns are specific structures based on very precise Fibonacci retracement and extension levels.

Significant reversals are often generated with Harmonic Patterns.

Bitcoin’s Daily Chart

Bitcoin’s Weekly Chart.

The bitcoin chart above shows one of Scott Carney’s Patterns, the Deep Crab. The Deep Crab is a 5-pint extension – but a very deep (pun intended) extension of the XA leg. The psychological component of the price action within this pattern is potent. Extension patterns are any moves where prices seem to move beyond the norm. Think of overbought and oversold conditions on an oscillator like the RSI (Relative Strength Index) or the TSI (True Strength Indicator). More than one trader has attempted to short an overbought market or buy into an oversold market. Chances are, that when you tried either of these scenarios, you were an unfortunate participant in the…