Technical analysis by MAAwan about Symbol BTC: Buy recommendation (11/5/2025)

Bitcoin is currently forming a Cypher Harmonic Pattern on the weekly timeframe — a rare but reliable reversal setup that often appears near exhaustion phases of a macro move. This structure aligns with potential mid-cycle correction before continuation, providing a clear roadmap for both bulls and bears. Cypher Harmonic Structure The Cypher pattern follows strict Fibonacci ratios: XA leg: The initial impulsive wave defining trend direction. AB retracement: Retraces between 0.382–0.618 of XA (here ~0.58). BC extension: Expands to 1.13–1.414 of AB (here ~1.27). CD completion: Extends to 0.786 retracement of the XC leg — this defines the potential reversal zone (PRZ). In this setup: X → A → B → C structure is complete. Price is now heading toward point D, projected between $50,000–$65,000, the ideal PRZ for this Cypher. The highlighted green box marks this completion and potential accumulation zone. Technical Confluence Weekly RSI Divergence Bearish divergence appeared between point B and C — confirming a loss of upward momentum. RSI now approaching mid-levels (40–45), aligning with a healthy reset within a broader bull structure. Volume and Momentum Shift Declining bullish volume since the C-leg high, typical before harmonic completion. Short-term bearish bias persists until D-zone validation. Fibonacci and Structure Alignment The 0.786 retracement of XC overlaps with historical weekly demand. This overlap reinforces the D-zone as a strong potential reversal point. Scenario Planning Base Case (Cypher Completion): BTC retraces toward $55K–$60K (D-leg). Price stabilizes within PRZ and confirms structure with bullish divergence on RSI. Potential upside reaction back toward $90K+ over the next few quarters. Alternative Case (Invalidation): A weekly close below $50K would invalidate the Cypher completion and shift bias to extended correction territory. Trading Considerations Aggressive Entry: Scale into longs within the PRZ ($55K–$60K) once momentum indicators show exhaustion. Conservative Entry: Wait for bullish confirmation on higher timeframes (weekly close above prior swing low). Invalidation: Close below $50K zone. Risk management is crucial — the Cypher is high-probability but not infallible. Conclusion The Cypher Harmonic Pattern suggests BTC may be in the latter stages of a mid-cycle correction. If historical structure repeats, the D-point could serve as the macro reaccumulation zone before the next impulsive leg of the bull cycle. Bias: Short-Term Bearish → Mid-Term Bullish Pattern Type: Cypher Harmonic Key Zone: $50K – $65K Invalidation: Weekly Close < $50K