Date: Sun, June 08, 2025 | 05:38 AM 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 $105,600, while ETH has recovered to around $2,515. This broader rebound is now lifting sentiment across altcoins, including Hyperliquid (HYPE).

HYPE is currently showing monthly gains of over 45%. More importantly, a well-known harmonic pattern forming on its chart suggests that further upside may be in continuation.

Source: Coinmarketcap

Harmonic Pattern Signals More Upside

On the 4-hour timeframe, HYPE is developing a Bearish Butterfly harmonic pattern — a technical setup known for forecasting bullish extensions before a reversal at the final leg.

The structure kicked off with a local high of $39.95 (Point X), followed by a 24% decline to $30.27 (Point A), forming the XA leg. HYPE then rebounded to $37.20 (Point B), which was a deep retracement of XA (around 81.9%), before correcting again to $32.61 (Point C), forming a clean BC leg with a 70.5% retracement of AB.

Hyperliquid (HYPE) 4H Chart/Coinsprobe (Source: Tradingview)

The final CD leg is currently underway, and if it plays out fully, the potential target lies at $42.58 — the 1.272 Fibonacci extension of the XA leg, which serves as point D in this setup.

This zone is a typical target for Butterfly completions and marks an area where traders might begin to take profits or prepare for a possible reversal.

What’s Next for HYPE?

With HYPE currently trading around $35.35, the path to $42.58 offers nearly 20% upside potential from current levels. If momentum continues and broader crypto sentiment stays bullish, HYPE could even overshoot toward the 1.618 Fibonacci extension at $45.93 — a 30% rally from here.

However, as with all harmonic patterns, the D point often signals a turning zone, so traders should remain cautious once price approaches the upper target band. Monitoring volume, momentum, and overall market conditions will be key in confirming the sustainability of this move.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.