- Bitcoin completes a textbook inverse head and shoulders pattern with a confirmed neckline breakout, pointing toward a projected target near $125,377.
- A retest of the neckline around $100K suggests the breakout may hold, turning previous resistance into new structural support for BTC.
- The 38.2% Fibonacci retracement holds as support, maintaining the bullish structure while BTC trades above $83,000 with rising volume.
Bitcoin seems to be in a robust bullish position after successfully testing the neckline of an inverse head and shoulders. The technical chart predicts a possible long-term upmove should the key supports be sustained. The market now looks for a push towards the $125,000 mark.
Inverse Head and Shoulders Formation
Bitcoin’s chart features an inverse head and shoulders pattern between mid-2021 and 2025. The figure consists of three dominant troughs that symbolize the left shoulder, head, and right shoulder. All three troughs contributed towards the completion of the whole shape. The figure serves as a bull reversal indicator on the long-term chart.
A recent tweet from Saylorsatsire noted that Bitcoin had successfully retested the neckline. His message outlined that the retest confirmed a classic bullish setup. The tweet provided insights into the formation and conveyed a strong technical outlook. Observers note that the pattern follows a recurring sequence that many traders have tracked over time.
The three troughs mark crucial support levels over multiple time frames. The left shoulder emerged during the mid-2021 decline, followed by a deeper low in late 2022 that formed the head. The right shoulder materialized in late 2023 when the price achieved a higher low. This three-part formation underscores the technical structure underlying the reversal.
Neckline Retest and Breakout
Bitcoin recently retested the neckline that connects peaks between troughs. The retest represents a critical moment within the pattern. In late 2024, the price broke above the neckline, triggering a noticeable upward push.
Technical analysis estimates the price target by measuring the vertical distance from the head to the neckline. The projection from this method suggests a target near $125,000 by 2025. Analysts see this move as part of the pattern’s natural progression. The retest may serve as confirmation of the breakout if the price holds above the neckline.
This clarity in structure gives a measurable approach to managing trades in the crypto market. The pattern reinforces the long-term bullish trend observed in Bitcoin’s price action.
Fibonacci Support and Market Performance
Another analyst, Titan of Crypto, stated that Bitcoin is currently in a reversal zone, reinforcing the Bitcoin outlook. His message mentioned that the 38.2% Fibonacci retracement level provides key support. The price action remains intact as long as Bitcoin closes above this threshold. The tweet also referred to the monthly fair value gap filled during this process.
Current market data shows Bitcoin trading at $83,637.05. The cryptocurrency has experienced a 2.57% price gain in the last 24 hours and a modest increase over the week. Trading volume reached approximately $34.3 billion in the past day. These metrics add to the view of a steady progression in price action.
Market participants closely monitor the retest of the neckline. The renewed test of former resistance as support adds clarity to the trend.
