Bitcoin is undergoing a critical technical test as it retests the neckline support zone of its inverse Head and Shoulders pattern between $109,000 and $112,000. A sustained hold above this level could validate the bullish formation and potentially trigger a rally toward $150,000.
The reversal pattern developed throughout early 2025, featuring a left shoulder in January, a deep head formation near $93,000 in March, and a higher right shoulder established in June. Market technicians identify $96,000 as the crucial invalidation threshold; any sustained break below this level would negate the pattern’s bullish implications.
Traders are monitoring for a decisive breakout above the $120,000 resistance barrier, which would confirm upward momentum toward the $140,000-$150,000 target range. The current retest’s strength, particularly when accompanied by robust trading volume, signals substantial buyer conviction and reinforces the potential for significant near-term price appreciation.