Bitcoin (BTC) may have paused after Friday’s weak U.S. jobs report, which reinforced expectations for Federal Reserve rate cuts, but technical charts suggest bullish potential.
Short-term analysis shows BTC forming an inverse head-and-shoulders (H&S) pattern, a well-known reversal signal that could pave the way for a move toward $120,000.
An inverse H&S consists of three troughs: a deeper central trough (the “head”) flanked by two smaller troughs (the “shoulders”). The pattern is confirmed when price breaks above the neckline, a horizontal trendline connecting the peaks between the troughs. A breakout typically signals a rally roughly equal to the distance from the head to the neckline.
At present, BTC appears to be forming the right shoulder, with neckline resistance at $113,378. A move above this level would confirm the bullish reversal, opening the door to $120,000. Conversely, a drop below $107,300 would invalidate the pattern, shifting attention to the 200-day moving average near $101,850.
About The Author
More Stories
Despite behaving like a tech stock at times, bitcoin continues to offer portfolio diversification benefits, according to an analyst
Bitcoin slides past the $68,000 mark as the dollar logs its sharpest weekly gain in a year.
Bitcoin faces a potential 30% decline as the four-year market cycle gains momentum, investment firm says.