Bitcoin News Today: Bitcoin Surges 25% to $118,222 Breaking Key Resistance

Bitcoin has recently surged past $114,000, completing a significant chart pattern that suggests further upward momentum. This breakout is indicative of a classic inverse head and shoulders pattern, which is a bullish signal in technical analysis. The neckline of this pattern was breached at approximately $114,000, propelling Bitcoin to a high of $118,222 before a slight pullback to $117,444. Analysts have projected that Bitcoin could potentially reach $144,000 under a linear scale and $160,000 under a logarithmic scale, based on the structure of this pattern.

The inverse head and shoulders pattern is a well-recognized bullish formation that spans from late 2024 into July 2025. The pattern began with the left shoulder peaking in December 2024, followed by a dip to form the head in April 2025. A second rally formed the right shoulder in July 2025, completing the reversal structure. The dotted neckline connecting the peaks of both shoulders and the head marked key resistance at $114,000. Bitcoin's successful breach of this neckline triggered the measured move calculation, aligning with bullish projections of $144,000 under linear price scaling and $160,000 under logarithmic analysis.

The vertical distance from the head to the neckline provides the basis for these targets. The projected move also corresponds with historical breakout dynamics observed in similar reversal setups. Traders often use this pattern to identify trend reversals and measure upward potential. The price action and volume confirm the setup, with BTC/USD recording a high of $118,222 shortly after breaking out from the neckline, confirming bullish market participation. The current price stands at $117,444, with modest resistance showing post-breakout consolidation. The price structure remains intact as long as BTC holds above the $114,000 support line.

The move occurred after months of consolidation between $90,000 and $114,000. That period of price contraction laid the groundwork for this reversal setup. Such formations are typically stronger when they develop over longer timeframes and involve deep retracements. Volume analysis is crucial in validating such patterns. Though specific volume figures were not displayed in the chart, the price surge beyond resistance suggests increased demand. Sustained bullish momentum above $114,000 would confirm the breakout’s credibility.

Analysts tracking the pattern project sustained accumulation before the next leg higher. The large target zone between $144,000 and $160,000 reflects the pattern’s height and duration. Traders are now watching for retests of the neckline to confirm support before further upside. The inverse head and shoulders pattern remains one of the most widely recognized bullish setups in technical analysis. Given Bitcoin’s strong history of reacting to classical chart formations, the current breakout holds weight in market interpretation.

The $144,000 linear target marks a critical psychological and technical level. If buying pressure continues, the $160,000 log-based projection may become the next resistance zone. However, the ability of BTC to maintain levels above the neckline will be key to sustaining bullish sentiment. With the neckline breakout confirmed, all eyes remain on short-term consolidation. A bounce off $114,000 would likely accelerate upward momentum. Market participants are now closely monitoring volatility and volume to assess breakout continuation.

Bitcoin’s current trajectory brings attention back to long-term bullish projections. As institutional demand resurfaces, technical setups like this one may serve as leading indicators of broader market sentiment. Can Bitcoin hit the projected range before facing another major resistance? The answer to this question will depend on the continued strength of the bullish momentum and the ability of Bitcoin to maintain levels above the $114,000 support line.