Bitcoin (BTC) paused after Friday’s disappointing U.S. jobs report, which reinforced expectations for Federal Reserve rate cuts, but technical signals suggest bullish potential.
Short-term charts show BTC forming an inverse head-and-shoulders (H&S) pattern, a classic reversal setup that often precedes upward price momentum.
An inverse H&S features three troughs: a deeper central trough (the “head”) flanked by two smaller troughs (the “shoulders”). A horizontal neckline connects the peaks between the troughs. A breakout above the neckline confirms a reversal from downtrend to uptrend, with a projected rally roughly equal to the distance from the head to the neckline.
Currently, BTC appears to be forming the right shoulder, with neckline resistance at $113,378. Surpassing this level could trigger a surge toward $120,000. Conversely, a drop below $107,300 would invalidate the pattern, refocusing attention on the 200-day simple moving average near $101,850 and reinforcing a bearish outlook.
