Bitcoin's Inverse Head and Shoulders Pattern Suggests 15% Upside

Bitcoin’s recent price movements suggest a strategic formation that could significantly impact its future trajectory. The broader market is observing with uncertainty as a classic inverse head and shoulders pattern appears to be developing, with Bitcoin potentially forming the right shoulder of this pattern. This formation, if completed, could serve as a catalyst for the next major upward movement. However, before this occurs, there is a possibility of a dip into the $90,000–$95,000 support zone, which could provide a necessary shakeout and reset of the Relative Strength Index (RSI) before a more explosive breakout.

Crypto analyst Chad recently shared a technical perspective on the daily Bitcoin chart, suggesting that it may be in the early stages of forming the right shoulder of an inverse head and shoulders pattern. This bullish formation often signals an uptrend after a period of consolidation. Chad outlined the possibility of a pullback into the $90,000s, with the $95,000 level identified as a major support zone. A move into this range could help “cool off” the market by easing the RSI, which recently showed signs of overheating. Such a dip could also shake out weak hands, ultimately positioning Bitcoin for a more sustainable rally in the sessions or weeks ahead.

Chad emphasized that this deeper retracement is not a certainty, as Bitcoin is currently finding support around the $101,000 zone. With a sustained position above this level, the right shoulder could form at higher levels, offering a more shallow and structurally stronger base before any breakout attempt. In either scenario, the analyst sees the potential pullback as healthy, provided that support zones remain intact. The market appears to be in a constructive phase, and whether Bitcoin dips lower or stabilizes here, the broader setup still favors continued upside once the pattern completes.

In another post, the analyst pointed out that the inverse head and shoulders pattern is also visible on the weekly Bitcoin chart, reinforcing the potential for a larger bullish structure. This pattern is beginning to take clearer shape across multiple timeframes, adding weight to the broader bullish case. A key factor in validating this setup lies in how Bitcoin interacts with the 1.272 logarithmic Fibonacci extension level, which is currently acting as a major resistance zone on the weekly timeframe. The analyst emphasized the importance of observing whether Bitcoin can close the week above this level, as that would suggest strong momentum and a possible breakout confirmation.

If Bitcoin fails to close above the 1.272 Fib level this week, it wouldn’t necessarily negate the bullish pattern. In fact, the analyst suggested it could make the setup even more favorable. A temporary rejection at this resistance would allow Bitcoin to pull back modestly, consolidate, and build strength, all while preserving the inverse head and shoulders structure. This price action would set the stage for Bitcoin to finally break the 1.272 Fib level.