Bitcoin has formed a significant inverse Head & Shoulders pattern, signaling a bullish breakout above the $101K neckline.
Analysts project BTC could hit $110,000 using the measured move theory, supported by strong volume activity during the breakout.
Maintaining support above the neckline and macroeconomic factors remain crucial for Bitcoin’s path toward higher levels.
Bitcoin (BTC) has recently formed a significant inverse Head & Shoulders (iH&S) pattern on the 4-hour chart, signaling a strong bullish breakout. Moving further, technical analysts now pin the $110,000 level as Bitcoin continues to extend its rally. This breakout occurs when the overall market mood becomes more bullish, and there are important levels that affect BTC's next move.
Understanding the Inverse Head & Shoulders Pattern
The inverse Head & Shoulders is an extremely popular pattern that is often used to predict a bullish turn at the end of a bear trending market. It comprises three lows: Nine is formed like two “shoulders” to the left and the right of a deeper “head” in the middle. The breakout takes place when a price crosses the neckline, or the level of resistance, to complete the pattern. Bitcoin price has recently managed to cross over the neckline that is identified around the $101,000 level in this case to prove the bullish signal.
https://twitter.com/TATrader_Alan/status/1868535506793029757 Breakout and Momentum Shift
This has been accompanied by a sharp increase in the price of Bitcoin being witnessed just above the neckline. Volume activity also supports this breakout conclusion; higher volumes than normal trade when the breakout occurs indicate robust buying pressures. But traders always expect such patterns to be supported by higher turnover, and as we can see, Bitcoin does not disappoint in this regard.
Subsequent to the breakout, the other possible price levels that the stock is expected to hit include $110,000 according to the measured move theory. In this theory, the price target is found by measuring the distance of the head’s low to the neckline then further upward from the breakout point.
Despite the breakout, analysts noted that there is still another level to break if the $..Bitcoin is to touch 110,000 in the next few years. One must observe support levels close to the neckline as a failure to hold above this area would mean that the bullish formation has faded. Secondly, the fundamental thesis acknowledges broader market factors such as macroeconomic and investor psychology as drivers of BTC’s path.
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