Bitcoin News Today: Bitcoin Surpasses $119K as Inverse H&S Pattern Drives Bullish Momentum

Bitcoin has confirmed a significant breakout from an inverse head and shoulders pattern, pushing above $119,000 and establishing a new consolidation phase above the neckline. The pattern, formed over several weeks, is characterized by clearly defined left and right shoulders and a head, with the right shoulder completing in early July before the price surged past $114,000 to the $119,000 region. Technical analyst Anup Dhungana noted that the structure remains robust on higher timeframes, with Bitcoin currently hovering in a "trap zone" between $117,500 and $137,500, a range historically associated with short squeeze activity and potential price acceleration [1].

The breakout has drawn attention to the short squeeze dynamics at play, as the current price action enters a critical phase where buyers could capitalize on liquidity imbalances. Tight-range candles observed between July 20 and July 28 suggest buyers are accumulating near the neckline, which now serves as a consolidation platform. Dhungana emphasized that a sustained move above $125,000 with strong volume could trigger a rapid advance toward the upper boundary of the trap zone, reinforcing the bullish technical setup [1]. However, market participants remain cautious about the unfilled CME gap near $114,000, which could act as a pullback magnet if the neckline weakens.

The inverse head and shoulders pattern is widely regarded as a reliable reversal indicator in technical analysis, with its completion signaling a shift in momentum. Bitcoin’s recent price behavior aligns with this structure, as the asset holds above the neckline despite lingering risks of a retracement to test the gap. Traders are monitoring daily closes and volume metrics to confirm the pattern’s validity. A breakdown below $119,000 would invalidate the bullish case, but current stability suggests strong hands are maintaining control of the trend [1].

Analysts highlight that similar breakouts in prior cycles have led to multi-week rallies, raising expectations for a potential push toward $137,500. However, such an outcome hinges on volume confirmation and sustained buying pressure. The trap zone’s upper limit remains a key resistance level, and a breach could signal the next phase of the rally. Meanwhile, the CME gap near $114,000 continues to attract scrutiny, with some traders speculating it could draw price action if the market retraces [1].

The current consolidation phase reflects a strategic pause, with buyers consolidating gains ahead of a potential breakout attempt. This period of tight ranging underscores the importance of key psychological levels, particularly $119,000, as the market digests the pattern’s implications. Technical traders will likely prioritize volume expansion and daily close behavior to gauge the strength of the bullish thesis. For now, the inverse head and shoulders structure, combined with the short squeeze dynamics, positions Bitcoin for a decisive move higher, contingent on the resolution of near-term risks.

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