Bitcoin has been a bit sluggish lately, trading below $120,000 and failing to stay above $118,000. But don’t let that fool you! A powerful bullish signal is brewing.
The Inverted Head and Shoulders Pattern
Crypto analyst Merlijn The Trader spotted a classic “inverted head and shoulders” pattern—a strong indicator of a price reversal. This pattern, formed over several months (February, March/April, and June/July), shows a “head” (a price dip) between two “shoulders” (smaller dips). The crucial part? Bitcoin broke above the “neckline” support at $110,000.
This breakout, followed by a retest (the price briefly dipped back but didn’t break below the neckline), is a very positive sign. It suggests the previous resistance has become support, paving the way for a significant price increase.
The $145,000 Prediction
Based on this pattern, Merlijn predicts a potential Bitcoin surge to $145,000. This projection hinges on Bitcoin bouncing off the breakout line. That’s a potential 27% jump from the current price!
Temporary Setbacks: ETFs and Other Factors
Despite the bullish pattern, things got a little rocky recently. Several factors contributed to a price drop:
- New US tariffs:
Announcements of new tariffs caused some market jitters. - Profit-taking: Traders cashed in profits near the resistance level.
- Spot Bitcoin ETF performance: US-based spot Bitcoin ETFs had a really bad day, with over $812 million in outflows. This drop in institutional demand likely fueled the price dip.
However, Bitcoin is currently trading around $114,260, showing some recovery. The overall outlook, according to this analysis, remains bullish.