Bitcoin is shaping a strong inverse head and shoulders pattern just above the $107K daily support zone.
A close below $107K would cancel the pattern while holding it could lead to breakout above $110K levels.
The RSI is rising with increased volume showing early signs that bulls may take control if support holds.
Bitcoin could be forming an inverse head and shoulders (H&S) pattern near the $107,000 level, according to a TradingView chart posted on June 12. The pattern suggests a potential bullish reversal, but its validity depends on the daily close holding above $107,000. If Bitcoin falls below this level, the formation could be invalidated.
Source: X Price Pattern Signals Possible Reversal
The chart outlines a textbook inverse H&S pattern on Bitcoin’s daily chart. The left shoulder (L.S.), head, and right shoulder (R.S.) are marked clearly. This pattern is traditionally seen as a bullish signal when confirmed by a breakout above the neckline.
Bitcoin’s neckline appears positioned around $110,650, which aligns with prior resistance. The neckline forms a horizontal boundary that price must cross for confirmation. Traders often look for volume support and a solid daily close above this level.
Currently, Bitcoin trades at $108,831.97, keeping the pattern valid but vulnerable. Maintaining price action above $107,000 remains essential. A dip below this support may force pattern invalidation and reset expectations.
$107K Level Acts as Key Support
The $107,000 support zone is critical in this setup. According to the chart analysis, the inverse H&S loses validity if Bitcoin closes below it. That would negate the bullish thesis and point toward a possible retest of lower levels.
Support zones like this often serve as battlegrounds for buyers and sellers. Price holding above this line indicates strength. But breaching below signals potential bearish continuation or pattern failure. Past examples have shown that price often wicks into such levels before deciding its next move. Volume data and RSI trends help strengthen such technical conclusions. The current zone marks a major inflection point.
Bitcoin’s neckline zone at $110,650, meanwhile, represents the upper boundary for breakout watchers. A clean daily close above both $107K and this neckline could attract higher trading volume and momentum. Until then, the pattern remains in development. Failure to maintain $107K may trigger renewed selling or invalidate bullish expectations. Traders will adjust strategies based on how price behaves at the close.
Volume and RSI Provide Confirmation Clues
Below the main chart, the Relative Strength Index (RSI) and volume bars offer supporting data. RSI currently reads at 66.11 and 62.36 on different overlays. This suggests growing momentum without reaching overbought territory.
The multi-colored volume histogram reveals increased buying pressure. Green and yellow bars dominate recent sessions, showing renewed interest from market participants. Such volume clusters often coincide with breakout attempts.
