Bitcoin News Today: Bitcoin Breaks $119,000 as Inverse H&S Pattern Fuels Bullish Rally

Bitcoin’s price has surged above $119,000 following a breakout from an inverse head and shoulders (H&S) pattern, a technical formation typically signaling a shift to bullish momentum. The pattern, which developed over several weeks, sees the neckline at $119,000 now acting as a consolidation platform. Price action remains within a defined “short squeeze trap zone” between $117,500 and $137,500, with traders closely monitoring daily closes to gauge the sustainability of the rally [1]. Anup Dhungana, a technical analyst, confirmed the breakout and emphasized that the chart structure remains robust on higher timeframes, noting the stability of tight-range candles between July 20 and July 28 [1].

The inverse H&S pattern is marked by a left shoulder at $114,000, a head at a lower low, and a right shoulder completing the structure before the breakout. After the right shoulder’s formation in early July, Bitcoin moved swiftly to the $119,000 region, consolidating above the neckline. This consolidation suggests strong buyer control, with volume and price action indicating accumulation by bullish participants. Analysts highlight that confirmed breakouts from such patterns often precede multi-week upward trends, aligning with historical cycles [1].

A critical area of focus is the CME gap near $114,000, which remains unfilled despite the price holding above the neckline. Dhungana previously predicted a potential pullback to this zone, though current sentiment favors continuation of the bullish trend [1]. The gap could reemerge as a price magnet if support at the neckline weakens, but the persistence of tight consolidation above $119,000 implies stronger hands are maintaining control.

The short squeeze trap zone, ranging between $117,500 and $137,500, presents a pivotal test for bulls. As price action advances within this range, liquidation of short positions could amplify upward momentum. Traders are monitoring whether Bitcoin can surpass $125,000 with strong volume, which would signal a potential acceleration toward the zone’s upper boundary. Current tight consolidation suggests preparation for a larger move, though confirmation will depend on daily closes and volume metrics [1].

Market participants are divided on whether the breakout marks the start of a sustained rally or a temporary correction. While the inverse H&S structure supports continuation, the unfilled CME gap near $114,000 remains a psychological level to watch. Bulls aim for $137,500, the upper band of the short squeeze zone, while bears anticipate a test of the neckline’s resilience. For now, Bitcoin’s price structure remains bullish, contingent on avoiding a decline below the critical $119,000 threshold [1].

Source: [1] [Bitcoin Breaks $119K as Inverse H&S Pattern Fuels New Rally] [https://cryptonewsland.com/bitcoin-breaks-119k-as-inverse-hs-fuels-rally/]