Bitcoin is tracing a bullish inverse head-and-shoulders on shorter timeframes, a setup that could clear the way for a move toward $120,000 if confirmed. The market failed to extend gains after Friday’s weak jobs report — which raised expectations for Federal Reserve rate cuts — but the technical picture still offers a clear, rule-based path for traders.
An inverse head-and-shoulders is a classic reversal pattern made of three troughs: a deeper head between two shallower shoulders, and a horizontal neckline across the intervening peaks. A decisive close above the neckline signals a trend reversal, and the conventional price objective equals the distance from the head to the neckline projected upward.
On hourly charts, Bitcoin appears to be forming the right shoulder. The immediate neckline sits at $113,378; a sustained move above that level would constitute a technical breakout and target roughly $120,000 based on the pattern’s measured move. The setup would be invalidated on a decisive decline below $107,300, which would refocus attention on the 200‑day simple moving average near $101,850 as the next major support.
Why traders should care: technical patterns like this create clear trade and risk-management rules — entry, stop and target levels — which many short-term participants combine with macro cues. With the Fed outlook turning more dovish after the jobs data, a confirmed breakout could attract momentum players and accelerate a move toward the measured target.
Risk awareness: chart patterns are probabilistic, not certain. Volume confirmation and a clean close above the neckline matter; false breakouts are common. This article is for informational purposes and not investment advice.
Watchlist: monitor breakout volume and hourly closes above $113,378, plus macro events that can swing sentiment (Fed remarks, economic releases). On-chain flows and institutional activity can help corroborate a technical breakout if those signals are available.
Source: CoinDesk. Read the original coverage for full details.