Inverse Head And Shoulders Breakout Suggests Bitcoin Price Is Headed To $300,000

Source Newsbtc

The Bitcoin price action is showing strong bullish signals, as a rare Inverse Head and Shoulder pattern has just broken out and retested its neckline. This technical setup suggests that Bitcoin could be gearing up for a mega rally to $300,000 soon.

Analyst Forecasts Bitcoin Price Reversal

On Monday, crypto analyst Gert van Lagen took to X (formerly Twitter) to forecast an imminent Bitcoin price surge to $300,000. The analyst presented a detailed price chart depicting the formation of an Inverse Head and Shoulder pattern, showcasing its left shoulder, head, right shoulder, and neckline. 

Based on his analysis on X, Lagen highlights that Bitcoin has successfully broken above the neckline of this technical pattern, confirming a possible bullish reversal. Specifically, the Inverse Head and Shoulder pattern is a classic technical indicator that signals a shift from a bearish trend to a bullish trend. The left shoulder of the pattern highlights a price decline followed by a temporary recovery. The head suggests a deep drop, marking the lowest point of the trend. The right shoulder indicates a smaller decline followed by a breakout above the neckline.

Bitcoin broke above the pattern’s neckline around the $86,972 price point. Lagen has pointed out that a successful retest of this neckline could solidify Bitcoin’s bullish move. This is because, historically, once this pattern is confirmed, cryptocurrencies tend to witness significant upside momentum. 

Bitcoin

Based on the measured move of the Inverse Head and Shoulder, Lagen predicts that Bitcoin is on track to reach $300,000 this bull cycle. This would represent a whopping 258.4% increase from its current market price. The analyst also highlights a sell line between $340,000 and $380,000; here, traders are likely to exit or take profits. 

Supporting this bullish outlook is a parabolic step-like formation on the Bitcoin price chart. Lagen revealed that this follows a series of formations from Base 1 to 4 before triggering an explosive price rally. Currently, Bitcoin has completed Base 3 and is entering its final parabolic phase. This technical formation aligns with the Elliott Wave theory that suggests that a strong Wave 5 could result in a significant price surge. 

While the analyst is confident in his $300,000 Bitcoin price projection, he warns that it could be completely invalidated if BTC drops below $72,900 in the weekly timeframe. Furthermore, a break below this threshold could signal a deeper price correction and delay the rally.

Update On BTC’s Price Analysis

While analysts remain optimistic about Bitcoin’s future outlook, the cryptocurrency experiences bearish momentum. In just 24 hours, Bitcoin lost virtually all the price gains it had accumulated since President Donald Trump announced plans for a crypto reserve.

The cryptocurrency was trading above $92,000 the previous day. However, Bitcoin has been down 9.18% in the last 24 hours and a whopping 16% over the past month, according to CoinMarketCap. This severe price decline has pushed the value of Bitcoin down to $83,699 as of writing.

Bitcoin
Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
China sends warning to BYD and its rivals amid heightened price warsChinese authorities summoned executives from the country’s major electric vehicle (EV) manufacturers, including industry leader BYD Co., to a closed-door meeting in Beijing this week, according to people familiar with the matter, cited by Bloomberg.
Author  Cryptopolitan
6 hours ago
Chinese authorities summoned executives from the country’s major electric vehicle (EV) manufacturers, including industry leader BYD Co., to a closed-door meeting in Beijing this week, according to people familiar with the matter, cited by Bloomberg.
placeholder
NZD/USD Price Forecast: Rejection at 0.6080 brings 0.6000 back into playNew Zealand Dollar’s upside attempts were capped at 0.6180 on Thursday, and the pair is extending the reversal on Friday, against a somewhat firmer US Dollar, which brings the 0.6000 support area back into focus.
Author  FXStreet
6 hours ago
New Zealand Dollar’s upside attempts were capped at 0.6180 on Thursday, and the pair is extending the reversal on Friday, against a somewhat firmer US Dollar, which brings the 0.6000 support area back into focus.
placeholder
Solana Price Forecast: SOL tests $140 support zone amid rising selling pressureSolana (SOL) edges higher by 2% at press time on Friday as it avoids a drop to the $140 support zone. However, the Solana price trend is approaching its second consecutive bearish week close, following a near 6% drop on Thursday.
Author  FXStreet
6 hours ago
Solana (SOL) edges higher by 2% at press time on Friday as it avoids a drop to the $140 support zone. However, the Solana price trend is approaching its second consecutive bearish week close, following a near 6% drop on Thursday.
placeholder
US Dollar Index (DXY) nudges up to 99.00 with markets bracing for the US NFPThe US Dollar Index (DXY) is showing a moderately positive tone on Friday, with investors trimming US Dollar lows ahead of May’s US Nonfarm Payrolls release.
Author  FXStreet
6 hours ago
The US Dollar Index (DXY) is showing a moderately positive tone on Friday, with investors trimming US Dollar lows ahead of May’s US Nonfarm Payrolls release.
placeholder
Stock Futures Edge Up as Trump-Musk Feud Cools, Jobs Report LoomsU.S. stock futures edged higher on Friday as markets awaited the critical May nonfarm payrolls report and signs emerged that the escalating feud between President Donald Trump and Elon Musk may be cooling.
Author  Insights
6 hours ago
U.S. stock futures edged higher on Friday as markets awaited the critical May nonfarm payrolls report and signs emerged that the escalating feud between President Donald Trump and Elon Musk may be cooling.
goTop
quote