Bitcoin Shows Key Technical Signals Pointing to possible Rally

• Bitcoin forms bullish Inverted Head and Shoulders near $110K resistance.
• Breakout above $110K could trigger rally past $140K by August 2025.
• Liquidity near $111K may cause short squeezes, supporting upward momentum.

Bitcoin (BTC) is currently forming a large technical pattern that may signal a strong bullish reversal. The Inverted Head and Shoulders formation has emerged on Bitcoin’s 3-day price chart on Coinbase, signaling a possible upward breakout if the price exceeds a key resistance near $110,000. This pattern, widely regarded in technical analysis as a bullish reversal indicator, implies that Bitcoin could enter a new phase of price appreciation.

The pattern consists of three main components: the Left Shoulder, the Head, and the Right Shoulder. The Left Shoulder appeared from December 2024 through February 2025, marked by a small price dip followed by a recovery. The Head, representing the lowest point, formed between February and April 2025, marking the deepest decline in this sequence.

The Right Shoulder developed from May to June 2025 and shows a price level roughly equal to the Left Shoulder but above the Head’s low. A major breakout line, drawn horizontally near $110,000, connects the highs following the Left and Right Shoulders.

Source: X

The chart projection depicts a moderate reversal following the breakout prior to the rebound of Bitcoin on a vigorous uptrend. This projection estimates the target price at above $140,000 by August 2025, when this rally may happen due to the estimated breakout.

Recent Market Momentum and Consolidation

Bitcoin’s daily price chart shows a continuing downtrend starting in early 2025 and lasting through mid-April 2025. This downtrend is marked by a descending trendline that reflects continuous selling pressure and falling prices.

A main moment identified as the “Start Pumping Zone” occurred in late April 2025 when Bitcoin broke above this descending trendline. This breakout marked a shift in momentum from bearish to bullish, followed by a strong rally extending through May and June.

Bitcoin is currently in a consolidation region of between $100,000 and $112,000. This horizontal price movement is indicative of an indecisive price period or a period of market stability, which typically precedes a strong price period before the price makes decisive moves.

Data indicates that Bitcoin liquidity is centrally located around the level of $111,000. Such dependence creates a situation where short-side liquidation will most likely favor the condition that can increase an upward price temperature should it be solicited.