Bitcoin (BTC) may have paused following Friday’s disappointing U.S. jobs report—which reinforced expectations for Federal Reserve rate cuts—but technical indicators suggest the potential for a bullish reversal.
Short-term charts indicate BTC is forming an inverse head-and-shoulders (H&S) pattern, a classic reversal setup that signals a possible surge toward $120,000.
The inverse H&S pattern features three troughs: a deeper middle trough (the “head”) flanked by two smaller troughs (the “shoulders”). A horizontal trendline, called the neckline, connects the peaks between the troughs. A breakout above this neckline confirms a shift from downtrend to uptrend, with the target typically equal to the distance between the head and neckline.
Currently, BTC appears to be forming the right shoulder, with neckline resistance near $113,378. A decisive move above this level could trigger a rally toward $120,000. On the downside, a drop below $107,300 would invalidate the pattern and shift focus to the 200-day simple moving average near $101,850, reinforcing a bearish outlook.
