BTC Could Rally Toward $120K on Potential Head-and-Shoulders Breakout

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.