Bitcoin is displaying a reversal pattern that could lead to a significant price increase. According to analysis, Bitcoin's 'most reliable reversal pattern' hints at BTC price rally toward $160K .
An inverted head and shoulders (IH&S) pattern has appeared on the 3-day and weekly BTC/USD charts. A recent breakout above neckline resistance near $113,000 confirms the structure and opens the door for a measured move toward at least $140,000, according to chartist Merlijn the Trader . Meanwhile, popular analyst Trader Tardigrade sees even more upside while presenting a similar but slightly ascended IH&S pattern on a weekly chart. He anticipates the BTC price to reach the reversal setup's measured target around $160,000 .
However, Bitcoin is cooling off after hitting a record high near $123,250 on Monday, slipping about 5.65% in a likely overbought correction . The pullback follows days of strong gains, with BTC's daily relative strength index (RSI) recently crossing 70, signaling short-term upside exhaustion among traders .
Furthermore, Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling $121,000 as the week's first US trading session began . New all-time highs near $123,250 had capped a blistering rally earlier today, with Bitcoin still up over 10% in a week . While many expected the market to pause for breath after such rapid upside, trading resource Material Indicators was cautious . “Don't get trapped!” it warned followers in its latest post on X .
However, according to pseudonymous analyst apsk32, Bitcoin's surge to fresh all-time highs may be just the beginning of a parabolic move, with one analyst predicting that BTC could reach $200,000–$300,000 by December 2025 if historical patterns play out . Bitcoin (BTC) is currently trading at $122,763, up over 10% this month, and well ahead of its long-term trendline based on a “power law” model that has accurately mapped prior cycle tops .
Furthermore, Bitcoin is in the midst of a new price trend, and while $150000 is the target, a brief period of consolidation could occur first .