Bitcoin is in the breakout phase, confirming one of the most reliable reversal patterns. Further growth towards $160,000 is anticipated.
Inverted Head and Shoulders Pattern
On the 3-day and weekly BTC/USD charts, a confirmation of the Inverted Head and Shoulders pattern has appeared. A breakout above the resistance level near $113,000 opens the path for continued growth with a potential target of at least $140,000.
Short-Term Pullback Expectations
Analysts note that Bitcoin may temporarily drop to the $114,000-$115,000 range before continuing to rise. This drop is associated with a correction after the price reached a record near $123,250. Data shows that large holders have begun to realize profits, which also affects the price.
MVRV Z-Score Analysis and Its Implications
Despite nearing historical highs, the MVRV Z-Score indicates that Bitcoin's rally is not yet overheated. This indicator measures how far Bitcoin's market value deviates from its realized value, suggesting further growth before reaching the target level of $160,000.
Thus, Bitcoin is in an intermediate phase, confirming its technical signals for further growth. A short-term correction may help solidify positions before reaching new peaks.
