- Bitcoin gained 85 percent after breaking the $110K neckline of an inverted head and shoulders pattern formed from late 2024 to 2025.
- Vietnam passed a digital law recognizing crypto assets nationally, effective January 2026, marking a first in Southeast Asia.
- The new Vietnamese law promotes AI and blockchain while aligning with FATF standards to boost global crypto credibility and adoption.
According to Merlijn The Trader, Bitcoin has completed a major bullish reversal pattern, breaking out past $110,000 and could reach highs above $145,000. From December 2024 to August 2025, the digital asset formed an inverted head and shoulders structure. This technical formation spanned several phases, with each changing in market sentiment. As the breakout matured, Bitcoin registered an 85% gain from the neckline at $110,000 to its peak.
Initially, the left shoulder formed between December 2024 and early January 2025. Bitcoin traded between $95,000 and $110,000 during this period. However, multiple failed attempts to breach $110,000 created solid resistance. The market then dipped sharply in February 2025, forming the head of the pattern. Price touched lows of $78,000 before recovering.
Source: Merlijn The Trader
The head’s recovery phase lifted Bitcoin back to $95,000. Besides, the right shoulder began forming between March and May 2025. During this period, Bitcoin again traded in the $95,000 to $110,000 range. After consolidating, the asset finally surged past the $110,000 neckline in late May. A spike in trading volume confirmed the pattern’s breakout.
Vietnam Recognizes Crypto With New Legislation
In a different Bitcoin-related event, Vietnam formally recognized Bitcoin and other cryptocurrencies after passing the Law on Digital Technology. The National Assembly passed the new law, which will go into force on January 1, 2026.
The law separates virtual assets from crypto assets. However, it avoids classifying them as securities or digital currencies. Consequently, this distinction creates a clearer regulatory path for market participants. Moreover, this recognition is the first national-level crypto framework in Vietnam.
A Step Toward Digital Integration
The regulation also encourages the use of blockchain technology and artificial intelligence. With this program, Vietnam hopes to transform its economy into a digital-first one. Additionally, the law improves collaboration with the Financial Action Task Force by conforming to global anti-money laundering regulations.
Hence, Vietnam could soon be removed from the FATF watchlist. Furthermore, the country joins a growing list of nations warming up to crypto. Ukraine and Pakistan are also exploring Bitcoin reserves. This growing trend signals intensifying global competition for leadership in digital assets.
