- Avalanche (AVAX) gained over 5% as the broader crypto market rebounds, with Bitcoin recovering above $105,540 and Ethereum back to around $2,520.
- AVAX is forming a Bearish Cypher harmonic pattern on the 4-hour chart, which typically signals short-term bullish continuation before potential pullback.
- The pattern projects AVAX could rally 10-16% to reach the $23.07-$24.32 resistance zone, based on key Fibonacci retracement and extension levels.
- The upcoming trading sessions will be crucial, as reaching the target zone could trigger algorithmic buying but may also attract profit-taking pressure.
Date: Sat, June 07, 2025 | 03:32 PM GMT
The cryptocurrency market is bouncing back strongly after Thursday’s sharp sell-off, which briefly dragged Bitcoin (BTC) to a low of $100,430 and Ethereum (ETH) to $2,387. However, the tide has turned—BTC has reclaimed levels above $105,540, while ETH has recovered to around $2,520. This broader rebound is now lifting sentiment across altcoins, including Avalanche (AVAX).
AVAX is back on the green track with noticeable gains of over 5%, and now a closer analysis of the charts reveals that the asset may be preparing for a continuation of its upward movement.
Bearish Cypher Harmonic Pattern in Play
A look at the 4-hour chart shows that AVAX is forming a Bearish Cypher harmonic pattern—a structure well-known in technical analysis for projecting short-term bullish continuations before a potential pullback.
The pattern began with a top at $24.32 (point X), dropped to $21.19 (point A), bounced to $21.68 (point B), and then fell again to $18.45 (point C). From point C, AVAX has started recovering and is now climbing higher, forming the final leg toward point D.
The projected D leg lies between $23.07 and $24.32—levels backed by key Fibonacci ratios: the 78.6% retracement of the XC leg and the 100% Fibonacci extension. These levels mark a potential reversal zone where the harmonic pattern would ideally complete.
If this setup plays out as expected, AVAX could rally an additional 10% to 16% from its current levels, retesting its recent local highs.
What’s Next for AVAX?
The upcoming trading sessions will be crucial. A continued push toward the $23.07–$24.32 resistance zone could validate the harmonic setup, potentially triggering algorithmic buying and interest from pattern-based traders. However, traders should remain cautious near that zone, as it could also attract profit-taking and short-term sell pressure—hallmarks of a completed Cypher pattern.
As long as AVAX maintains its momentum and stays above support levels near point C, the bullish scenario remains in play.
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