Bitcoin’s ‘Most Reliable Reversal Pattern’ Hints at BTC Price Rally Toward $160K

Takeaways from the conference:

• Bitcoin confirms an inverted Head-and-Shoulder breakout.

• A short-term pullback toward $114K–$115K may retest former resistance as support.

• BTC has still got room to rally, as MVRV Z-Score is well below historic peak levels.

BitcoinBTCChartists describe this as the “breakout stage” of one of its “most reliable reversal patterns,” Signaling an extension of the upward movement towards $160,000.

Bitcoin may drop toward $114,000 first

An inverted head and shoulders (IH&S) pattern has appeared on the 3-day and weekly BTC/USD charts.

Recent breakouts above neckline support near $113,000 confirm the structure, and open the doors for measured moves toward at least $140,000Merlijn, the chartist.

Trader Tardigrade is a well-known and popular market analyst. sees even more upside while presenting a similar but slightly ascended IH&S pattern on a weekly chart.

The BTC value is predicted to rise around the $160,000 target set by the reversal configuration.

Bitcoin’s price is cooling down after reaching a high of $123,250 near the end of Monday. The currency has fallen about 5.65% as a result.

BTC has seen a strong rise in value over the past few days. relative strength index (RSI) Recent crossing of 70 indicates short-term upward exhaustion by traders.

Profit-taking was also a factor, according to data from on-chain. Both long-term holders and short-term speculations have been large holders. locking in gainsThe downside pressure is increasing.

Related: Satoshi-era whale moves $4.6B in Bitcoin after 14-year HODL

The Hardys, by Analyst Hardy says Bitcoin could revisit the CME range between $114.300 and $115.600 in order to confirm that it is a new support level before moving higher.

This region nearly aligns with the neckline of the IH&S pattern.

It is relatively common for price to return to the breakout zone—previous resistance turned support—before resuming its trend. It is common for such behavior to help flush out weak players and establish a strong foundation.

Bitcoins’ rally towards the target of $140,000-160,000 by August or Septembre would be strengthened if the neckline area bounces back.

Bitcoin rally is not overheated as MVRV Z Score shows

Bitcoin’s price is near its all-time highest, but it still has a long way to go. MVRV Z-Score The market is still far from the highs that have historically been associated with market peaks. The current rally might still have some room for growth.

The MVRV Z-Score reflects the deviation between the market price of Bitcoin and its actual value. This is an indicator for how much capital has been invested in the Bitcoin Network.

In the past, when the market value exceeds the realized value by a large margin, the score goes into the “red zone”, signaling an overvaluation.

This indicates that, from an onchain perspective, Bitcoin is not yet overheated and may continue climbing before entering a classic top formation, potentially hitting the IH&S’s $160,000 price target by August or September.

This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.