- Bitcoin is retesting the neckline of an inverse H&S breakout, a common technical move before resuming an upward price trend.
- The invalidation level at $96K remains untouched, keeping the bullish reversal pattern active and signaling sustained structural strength.
- Reclaiming $120K resistance may confirm continuation toward the $140K–$150K target, supported by previous cycle projections and Fibonacci levels.
Bitcoin is currently in the midst of a textbook retest of its neckline after completing a bullish inverse Head and Shoulders (H&S) breakout on the daily chart.
Classic Re-Test Following Inverse H&S Breakout
Colin Talks Crypto shared an update on the ongoing Bitcoin inverse Head and Shoulders setup, highlighting the current price activity as a standard retest. According to his analysis, BTC is retesting the neckline between $109.3K and $112K—a move that often follows an H&S breakout before continuation.
This inverse H&S pattern began with a left shoulder formed in January 2025, followed by the head near $93K in March. A right shoulder developed in June, creating a symmetrical formation. The neckline was breached in early July, generating a bullish breakout. As the price returns to this neckline zone, market participants see it as a potential support confirmation, not a weakness in the structure.
Technical Structure Remains Intact
Despite the ongoing pullback, the structure remains intact. The red line near $96,000 is noted as the invalidation point for the H&S formation. As long as Bitcoin trades above this level, the bullish structure remains valid.
The momentum has been in the bullish direction until this up trend is violated, on high volume and with follow-through. The present support over the neck line implies that the buyers remain in power. The measured move from the pattern’s height projects a target of $150,000, aligning with long-term Fibonacci extensions and historical cycle top zones.
What Comes Next for Bitcoin Price
Colin pointed out the significance of the price activity within the zone of $109.3K and $112K. A sharp recovery off of this level with an increase in the volume of trading would be an indication of the strength of buyers. Otherwise, failure to maintain this range could drive the price on the lower side of support levels at around 103K and 105K.
Bitcoin would need to break above recent highs of about $123K to regain bullish momentum and take prices above the previous price high of about $120K. There is a potential to reach the $140K–$150K target once a breakage of these levels occurs to the upside. Until then, market participants continue to monitor the neckline region as the key zone for near-term direction.
