Erald Ghoos, CEO of OKX Europe, said clearer US crypto regulations could provide fresh momentum for the digital-asset market as investors potentially rotate capital from AI-related investments back into Bitcoin.
Bitcoin’s recent trading has been relatively quiet, with limited price action leaving traders searching for a stronger catalyst.
Despite the lack of volatility, the technical chart may be developing a bullish formation that could point to a potential move toward $76,000 if confirmed.
The setup resembles an inverse head-and-shoulders pattern, a structure commonly associated with reversals following a downtrend. The formation features three lows, with the middle one typically being the deepest and the other two forming higher troughs.
The deepest low represents the point of maximum selling pressure, while the following higher low can indicate that sellers are beginning to lose control.
Confirmation comes when the asset breaks above the neckline, which is drawn through the rebound highs between the three troughs. A sustained breakout above that resistance is generally interpreted as a bullish reversal signal.
Bitcoin’s daily chart shows a structure that could fit this pattern. The move toward $60,000 in early June may have formed the left shoulder, while the decline to roughly $57,700 in late June or early July could represent the head.
The rebound from around $62,500 would then form the potential right shoulder, with each low followed by a recovery toward a similar resistance area.
Those recovery highs put the neckline at approximately $66,800. A strong move above this level would give technical traders confirmation that the pattern is developing into a bullish reversal.
Using the distance between the neckline and the head to calculate the measured move produces a potential target near $76,000.
However, chart formations are open to interpretation, and some traders may argue that Bitcoin’s current structure does not perfectly meet the traditional criteria for an inverse head-and-shoulders pattern.
The setup is nevertheless viewed by many technical analysts as a reliable bullish reversal formation. Thomas Bulkowski, a well-known authority on chart patterns, ranked it 13th among 39 formations for performance and found an 11% break-even failure rate.
His research, based on thousands of historical equity charts, showed that 71% of inverse head-and-shoulders patterns reached their measured targets, while 65% experienced a neckline retest before continuing higher.
Bitcoin’s current formation remains unconfirmed. The bullish scenario would only gain validity if BTC breaks above the roughly $66,800 neckline and holds that level.
The broader fundamental backdrop also presents a challenge. Expectations for the Clarity Act to pass this year have weakened, reducing the potential regulatory catalyst that some market participants had been anticipating.
As a result, traders may need to remain cautious for renewed downside pressure even while the technical setup points toward a possible upside breakout.
On the downside, Bitcoin’s 50-day simple moving average near $63,321 remains an important support level.
A decisive drop below the 50-day average would undermine the bullish formation and suggest that the setup is breaking down rather than preparing for a breakout.
