Recent movements of Bitcoin in the market indicate a possible bullish trend based on a forming technical pattern.
Inverted Head and Shoulders Formation on Bitcoin Chart
On the three-day chart of Bitcoin on Coinbase, a large technical model known as the Inverted Head and Shoulders is forming, signaling a potential price increase. This pattern consists of three main components: the Left Shoulder, the Head, and the Right Shoulder. The Left Shoulder appeared from December 2024 to February 2025, followed by a small dip and a recovery. The Head, representing the lowest point, formed between February and April 2025. The Right Shoulder developed from May to June 2025 and shows a price level roughly equal to the Left Shoulder but above the Head's low. A major breakout line drawn horizontally is located around $110,000.
Recent Market Momentum and Consolidation
Bitcoin's daily price chart has shown a continuing downtrend starting in early 2025 and lasting through mid-April 2025. This downtrend is marked by a descending trendline reflecting continuous selling pressure and falling prices. A key moment identified as the 'Start Pumping Zone' occurred in late April 2025 when Bitcoin broke above this descending trendline, marking a shift in momentum from bearish to bullish. Currently, Bitcoin is in a consolidation range between $100,000 and $112,000, indicating a period of price indecision or stability.
Forecasts and Prospects for Bitcoin
It is projected that if Bitcoin surpasses the $110,000 level, this could trigger a price rally past $140,000 by August 2025. Observing liquidity data, significant concentration is noted around the $111,000 level. This creates conditions for potential short-side liquidation that could favor upward price movement if solicited.
Current formations and price dynamics for Bitcoin may indicate a potential start of a new bullish phase, but further market movements will depend on surpassing key levels.
