Categories: Bitcoin Latest News

Bitcoin Triggers Bullish Head and Shoulders Pattern. What Next?

This is a daily analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.

A softer-than-expected U.S. PPI pushed bitcoin (BTC) past $113,600, confirming the bullish inverse head and shoulders pattern highlighted earlier this week.

The breakout signals the end of the recent pullback from record highs above $124,000 and the resumption of the broader rally. Using the measured move technique, which adds the distance between the pattern’s low and the breakout point to the breakout level, suggests bitcoin could reach nearly $120,000.

The ascending 50-, 100-, and 200-hour simple moving averages (SMAs) support the bullish momentum gathering strength. Additionally, the daily chart’s MACD histogram crossing above zero further confirms a positive shift in market sentiment.

On the upside, bulls may encounter resistance near the heavily watched 50-day SMA at $114,700, while on the downside, the recent higher low at around $110,000 serves as a key level for bears to challenge.

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