Key Takeaways
Bitcoin broke above $113,600, confirming a bullish inverse head and shoulders pattern.
Technicals suggest upside toward $120,000, with resistance near the 50-day SMA at $114,700.
Downside support remains strong at $110,000, the recent higher low.
Bitcoin Breaks Out With Bullish Pattern
Bitcoin (BTC) surged past $113,600 on Wednesday, completing a bullish inverse head and shoulders formation that signals renewed upside momentum. The breakout comes after a softer-than-expected U.S. PPI report, which boosted Fed rate cut bets and risk appetite.
The move marks the likely end of Bitcoin’s recent pullback from all-time highs above $124,000, setting the stage for the next leg of the rally.
Price Target: $120K in Focus
Using the measured move technique, which adds the distance from the pattern’s low to its breakout point, Bitcoin’s target projects toward $120,000.
Supporting bullish momentum:
50-, 100- and 200-hour SMAs are all trending higher.
The MACD histogram has flipped positive on the daily chart.
Key Levels to Watch
Resistance: $114,700 (50-day SMA)
Support: $110,000 (recent higher low)
Bulls will look to hold $113,600 as a new support base, while a move above $114,700 could accelerate momentum toward $120K. A drop below $110K, however, would invalidate the bullish setup.
Market Outlook
The confirmation of the bullish head and shoulders pattern gives Bitcoin technical tailwinds for further upside. With macro conditions also turning supportive, traders are eyeing $115K and $120K as the next big hurdles for the world’s largest cryptocurrency.
