If you’ve been watching Bitcoin lately, you might think its price swings are just random ups and downs.
But some analysts suggest there’s a strategic pattern quietly taking shape behind the scenes.
Instead of a chaotic market, Bitcoin could be gearing up for a significant rally—if things go according to plan.
One technical setup catching a lot of attention is the classic “inverse head and shoulders” pattern.
This formation often signals a trend reversal, meaning Bitcoin could be about to break into a new upward phase.
Right now, it looks like Bitcoin is building the final piece of that pattern, known as the right shoulder.
But before the fireworks, a small dip might be needed to set things up perfectly.
What Is the Inverse Head and Shoulders Pattern Telling Us?
Crypto analyst Chad recently shared some sharp insights on social media, highlighting how the daily Bitcoin chart seems to be forming this bullish pattern.
The idea is that Bitcoin could pull back into the $90,000 to $95,000 range — a key support zone that might act like a reset button.
Why a dip? Well, Bitcoin’s momentum has been pretty hot lately, with the Relative Strength Index (RSI) showing signs of overheating.
A brief cooldown could help shake out some weaker hands — those investors who might sell at the first sign of trouble — making the market stronger and healthier for a sustained rally.
That said, Chad pointed out that this dip isn’t guaranteed.
Bitcoin is currently holding up well around the $101,000 mark.
If it manages to stay above that level, the right shoulder could form at a higher price point, creating an even sturdier base before the next surge.
A Healthy Pullback Could Be Part of the Plan
Whether Bitcoin drops back into the $90k zone or stabilizes near $101k, Chad believes both scenarios are positive signs.
The market looks constructive and ready to move higher once this pattern completes.
In other words, a pullback wouldn’t be a sign of failure but rather a healthy step toward bigger gains.
A Bigger Picture Test Looms on the Weekly Chart
Zooming out, the inverse head and shoulders pattern is also showing up on Bitcoin’s weekly chart.
This adds more weight to the bullish argument — the pattern isn’t just a short-term setup but potentially a long-term signal.
A critical hurdle is the 1.272 Fibonacci extension level on the weekly timeframe.
This level is acting as a strong resistance zone, and whether Bitcoin can close above it by the end of the week will be a key moment.
Clearing this barrier would indicate solid momentum and likely confirm the breakout many traders are hoping for.
What If Bitcoin Can’t Break the Resistance Yet?
Even if Bitcoin doesn’t close above that Fibonacci level this week, it doesn’t mean the bullish setup is dead.
In fact, a short-term rejection might make the pattern even stronger.
It would give Bitcoin a chance to pull back a little, consolidate, and build more energy for a bigger breakout later on.
So, a small pause or retracement could be exactly what the market needs to prepare for the next big move upward.
Staying Informed with Trusted and Thorough Analysis
At bitcoinist, our team is committed to bringing you well-researched, unbiased, and accurate crypto insights.
Each article is carefully reviewed by industry experts and editors to make sure you get content that’s reliable and useful.
With Bitcoin’s price action unfolding in such an interesting way, keeping an eye on these technical signs can help you stay ahead of the curve as the market evolves.