Bitcoin price staged a decisive breakout past $113,600 on Sep. 10, ending a brief pullback from record highs and confirming a classic bullish inverse head-and-shoulders pattern. The move pushed BTC to about $113,900, signaling a potential resumption of the broader uptrend.
The measured-move projection — which adds the distance between the pattern’s low and the neckline to the breakout point — points toward a near-term target around $120,000. That projection aligns with momentum across timeframes: the 50-, 100- and 200-hour simple moving averages are all tilted upward, and the daily MACD histogram has crossed above zero, suggesting buying pressure is building.
One immediate catalyst for the move was a softer-than-expected U.S. producer price index, which eased short-term rate pressure and helped risk assets, including bitcoin, rally. Still, sustainable gains typically require confirmation across timeframes: traders look for a definitive daily close above the neckline accompanied by rising on-chain inflows or ETF purchase activity.
Near-term risks remain. Bulls may face resistance around the widely watched 50-day SMA at $114,700, and a failure to hold recent higher lows near $110,000 would give bears a clear vulnerability to test. The breakout marks the end of the pullback from all-time highs above $124,000, but technical patterns can fail — so expect volatile chop around key moving averages.
Inverse head-and-shoulders is a common reversal pattern: a lower trough (the head) flanked by two higher troughs (the shoulders), with a neckline connecting the intervening highs. A close above the neckline on strong volume is the classic confirmation signal; traders then use the measured move to estimate targets. While useful, it’s one input among many — macro data, liquidity flows, and news can quickly change the setup.
If bulls keep control, clearing resistance near $114,700 and re-challenging the $124,000 area would open space for a renewed leg higher beyond the measured target. Conversely, a failure to sustain the breakout — particularly a decisive break below the $110,000 higher low — could prompt a deeper pullback and invalidate the pattern. For active traders, watching volume, moving-average crossovers and macro calendars will help manage risk.
Risk awareness: Technical projections are probabilistic, not guaranteed. Consider position sizing, stop placement and broader market context (macroeconomic releases, on-chain flows and liquidity) before acting.
Source: CoinDesk. Read the original coverage for full details.