Bitcoin Triggers Bullish Head and Shoulders Pattern. What Next?

This is a daily analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole. A softer-than-expected ￰0￱ pushed bitcoin (BTC) past $113,600, confirming the bullish inverse head and shoulders pattern highlighted earlier this ￰1￱ breakout signals the end of the recent pullback from record highs above $124,000 and the resumption of the broader ￰2￱ the measured move technique, which adds the distance between the pattern’s low and the breakout point to the breakout level, suggests bitcoin could reach nearly $120,000. The ascending 50-, 100-, and 200-hour simple moving averages (SMAs) support the bullish momentum gathering strength. Additionally, the daily chart’s MACD histogram crossing above zero further confirms a positive shift in market ￰3￱ the upside, bulls may encounter resistance near the heavily watched 50-day SMA at $114,700, while on the downside, the recent higher low at around $110,000 serves as a key level for bears to challenge.