Cryptocurrency Bitcoin sets new record at $119K driven by an Inverse Head and Shoulders pattern, boosting the recent surge in value.
In a significant development for the cryptocurrency market, Bitcoin has broken out of an inverse head and shoulders pattern, signaling a strong bullish reversal. This pattern, confirmed around July 2025, suggests an upward price movement potentially reaching between $144,000 and $150,000 in the near term.
The inverse head and shoulders pattern was preceded by a consolidation phase from late 2024 to mid-2025. The neckline breakout was initially observed above $112,000, later rising above $119,000 and even $122,600. This breakout was accompanied by strong bullish candlesticks and heavy volume, indicating institutional buying interest and bullish sentiment.
Following the breakout, a retest or pullback to the neckline (support zone near $109,000 to $119,000) is anticipated. Analysts highlight that most inverse head and shoulders breakouts experience such pullbacks rather than continuous immediate rallies. One analyst projects Bitcoin could dip back to around $109,000 in a short-term correction, representing about a 5% pullback from current levels around $117,000. This aligns with historical behavior of Bitcoin retesting neckline levels after head and shoulders breakouts.
After this consolidation phase in the "short squeeze trap zone" (ranging roughly between $117,500 and $137,500), the next leg up could be triggered by a squeeze of short positions, pushing Bitcoin further upwards.
Traders are closely monitoring volume for confirmation of continuation, and market participants are alert to how the structure resolves on the daily and weekly charts. The unfilled CME gap near $114,000 is considered a possible pullback target. If Bitcoin pushes above $125,000 with strong volume, it may lead to a swift run toward the upper band of the trap zone.
The overall sentiment remains bullish, but price dipping below the neckline could change this. If the bullish trend continues, bulls may target the $137,500 trap zone as the ceiling.
[1] CoinDesk
[2] The Block
[3] Decrypt
[4] Financial Times
- As Bitcoin's price surges following the neckline breakout, crypto analysts at CoinDesk suggest that altcoins might also benefit from the bullish sentiment in the wider cryptocurrency market, potentially leading to high-growth opportunities for investors.
- Furthermore, some technology experts at Decrypt predict that the current bull market in cryptocurrency finance could last longer than expected, driving crypto adoption rates higher and encouraging more institutions to venture into cryptocurrency investing.
- Meanwhile, the Financial Times reports that some financial analysts warn about potential risks in the cryptocurrency market, including the high volatility seen in Bitcoin and other cryptocurrencies, which could negatively impact those who are not well-informed or cautious in their investing decisions.
