Market Overview
The cryptocurrency market is currently exhibiting mixed momentum. Bitcoin (BTC) has seen a slight increase of 0.50%, while Ethereum (ETH) is experiencing a 2% dip. This divergence has created a fragmented environment for altcoins; however, some assets are beginning to show positive movement, including Aptos (APT).
Developing Harmonic Pattern on 4H Chart
Aptos (APT) is trading with modest gains today. Importantly, its 4-hour chart is revealing a developing harmonic pattern that could shift momentum in favor of buyers. A potential harmonic formation is emerging, suggesting that a bullish continuation may be imminent.
Harmonic Pattern Analysis
On the 4-hour timeframe, APT is forming a Bearish Butterfly harmonic pattern. This pattern is known for driving prices higher until the final D-point is completed. While the major reversal typically occurs at the Potential Reversal Zone (PRZ), the movement towards this zone often encourages steady upward price action.
The pattern originated at Point X, near $3.6158. This was followed by a corrective decline into Point A. Subsequently, APT rebounded into Point B, approximately at the 0.783 Fibonacci retracement level. From there, it dipped into Point C at $2.70, which is now serving as the critical support level maintaining the integrity of the entire structure as the price climbs towards $3.01.
A significant development strengthening this bullish outlook is APT's successful reclamation of the 100 moving average, which is currently situated around $2.95. This recovery is a strong technical indicator, transforming the 100 MA into dynamic support and increasing the likelihood of sustained upside movement.
Future Outlook for APT
Should buyers continue to defend the 100 MA and maintain the price above $2.95, APT could advance towards the PRZ. This zone is located between $3.9491 (the 1.27 Fibonacci extension) and $4.3731 (the 1.61 Fibonacci extension). This area represents the completion point for the Bearish Butterfly pattern and is the next significant region for potential upside that traders are closely observing.
However, it is important for traders to note that the PRZ frequently acts as a temporary profit-taking area. At this zone, the price may experience hesitation or a pullback before establishing a more definitive long-term trend.
Conversely, if APT fails to hold its position above $2.70, the harmonic pattern risks invalidation. Such a price breakdown could expose the token to deeper corrective phases before any substantial recovery attempt can emerge.