Bitcoin News Today: Bitcoin Retests $113K Neckline as Bullish Pattern Sees Potential 32% Rally

Bitcoin is currently retesting a critical neckline on its price chart following the completion of an inverse head and shoulders pattern, a classic bullish reversal formation. This pattern is composed of three troughs—two relatively equal in depth (left and right shoulders) and a deeper trough (the head). The neckline, acting as a resistance level, is currently estimated to be within the range of $113,000 to $115,000. A successful retest—where Bitcoin maintains above this level—could signal a strong continuation of the bullish trend and potentially push the price toward $150,000 [1].

The pattern has completed its key phases: the breakout, which occurred when the neckline was breached, and now the retest, which is unfolding as the price returns to test the same level. According to analysts, this retest is a pivotal moment that could validate the bullish continuation. The integrity of the pattern remains intact, and if the price stabilizes in this zone without breaking back below the neckline, it may serve as a launchpad for a stronger upward move [1].

Technical analyst @el_crypto_prof has highlighted this unfolding formation on Bitcoin’s 3-day chart, describing it as a "textbook bullish continuation." The left shoulder was formed through consolidation and a dip, followed by a deep retracement to create the head. A higher low then formed the right shoulder, signaling a return of buyer interest. The recent breakout above the neckline has now been followed by a retest, a common step in this pattern, placing Bitcoin at a key decision point [1].

The retest phase is widely viewed as a final confirmation before a potential surge. Market observers are closely monitoring price action and volume at the neckline. A firm hold above this level could attract renewed interest from traders and investors waiting for confirmation of the bullish trend. If the pattern holds, the projected target of $140,000 to $150,000 becomes increasingly plausible [1].

In addition to technical factors, macroeconomic conditions are aligning in favor of Bitcoin’s potential upside. Global liquidity trends, particularly in the U.S., are supporting a favorable market environment. U.S. liquidity has grown at its fastest pace since Q3 2024, rising 1.09% year-over-year. This liquidity expansion is expected to continue with increased Treasury bill issuance, easing SLR rules, and anticipated Federal Reserve rate cuts in 2025. These developments could provide broader support for digital assets, reinforcing the technical setup already in place [1].

Bitcoin is retesting a confirmed neckline at a time when liquidity trends align with bullish expectations. With the pattern in place and the level being tested, the next phase may arrive sooner than expected. Traders and investors are advised to closely monitor this key level, as it could determine whether Bitcoin continues its upward trajectory or faces a potential reversal [1].

Source: [1] Bitcoin Retests Key Neckline as Traders Eye Potential Rally Toward $150K (https://en.coinotag.com/bitcoin-retests-key-neckline-as-traders-eye-potential-rally-toward-150k/)