Bitcoin nears key technical breakout that could propel prices to $76,000

Bitcoin $BTC$64,316.33’s bounce, it’s up 3% since midnight UTC, is rapidly lifting it to a critical level that chart analysts say could trigger a classic bullish reversal pattern, potentially unlocking a substantial upside move.

Charts from market technician Aksel Kibar of Tech Charts show an inverse head-and-shoulders formation developing on the daily chart since the June lows.

The pattern, discussed by CoinDesk a few days ago, is identified by three troughs, with the middle one being the deepest, separated by brief recoveries. The line connecting these recoveries is called the neckline of the inverse formation.

The pattern’s neckline resistance sits near $66,600. $BTC is trading just short of that level, recently changing hands at $66,500.

A decisive break and hold above the neckline would confirm the inverse head-and-shoulders pattern and project a measured-move target of $76,000, according to Kibar. That level represents the pattern’s calculated upside objective based on the distance from the head to the neckline.

The structure has been building since early June, marking a potential bottom of the brutal bear market after prices peaked at $126,000 in October last year.

Traders are closely watching to see if the formation confirms a fresh uptrend.