Overview

Bitcoin is forming a bullish inverse head-and-shoulders pattern, indicating a possible rise to around $120,000. Currently, BTC is trading close to $112,000, having increased by 0.67% in the last day.

Key Points:

• The formation of a bullish pattern suggests a breakout could lead to a significant rally.
• The bullish inverse head-and-shoulders pattern includes three troughs, with the central trough as the ‘head’ and two smaller ‘shoulders’ on either side.
• A breakout past the neckline confirms a shift from a downtrend to an uptrend.

*BTC might be forming the right shoulder of the pattern; the neckline resistance is set at $113,378. A breakout above this level will likely lead to a rally towards $120,000.

Chart Analysis

BTC Chart

This formation would be invalidated with a drop below $107,300, reinforcing a bearish outlook.

For further insights, read: Bitcoin’s Recovery Potential.