- Bitcoin forms right shoulder near $116K, with $112K support before rallying toward $130K.
- Neutral MVRV scores and ETF inflows of $2.8B support balanced yet bullish BTC conditions.
- Fibonacci levels guide BTC path, with resistance at $118K and extensions aiming for $129,740.
Bitcoin (BTC) is currently trading near $116,260, maintaining strong liquidity while technical analysis points to a potential right-shoulder formation in a head-and-shoulders pattern. The structure suggests a possible dip toward $112,000 before price targets extend upward to $130,000, with Fibonacci retracement and extension levels guiding traders’ focus.
Head-and-Shoulders Formation and Technical Levels
According to analysis prepared by Ali Charts, Bitcoin appears to be developing the right shoulder of a head-and-shoulders setup. The left shoulder formed around August 23, the head on August 29, and the projected right shoulder is emerging in mid-September.
Current resistance sits near $118,000, marking the neckline of this technical structure. Chart data shows retracement levels at $115,672, $114,307, $112,966, and $111,600. The 0.618 Fibonacci zone at $112,966 aligns closely with the potential dip target of $112,000.
This support cluster is viewed as a crucial base before further expansion. Upside projections extend from the neckline breakout. Targets are plotted at $121,048, $123,099, $125,104, and $127,122, with a broader extension pointing toward $129,740. This places the next rally target close to $130,000 if resistance levels are cleared decisively.
Market Activity and Institutional Support
According to an observation by Axel Adler Jr., Bitcoin market conditions remain balanced, with Short-Term Holder MVRV Z-scores hovering near zero. He stated, “There’s a 70% chance the next two weeks will see a stepwise uptrend or sideways consolidation.” This outlook reflects neutral positioning and room for upward expansion.
Institutional demand continues to play a strong role in supporting Bitcoin’s stability. Data shows U.S. spot Bitcoin ETFs have attracted $2.8 billion in inflows since September 9, reinforcing sustained interest. Derivatives markets also reflect strength, with Bitcoin futures trading at a consistent premium to spot prices, a pattern often linked to bullish trends.
At present, Bitcoin holds a market capitalization above $2.3 trillion with 19.92 million BTC in circulation. Daily trading volume has reached $43 billion, keeping liquidity robust. Within this setup, Bitcoin remains positioned between $112,000 support and $130,000 as the next major rally target.
