Bitcoin Forms Inverse Head and Shoulders: $130K Breakout Target in Focus

After weeks of sideways movement and fading momentum, Bitcoin appears to be setting up for a structural shift. The 12-hour chart shows a clean inverse head and shoulders formation—one of the most trusted bullish reversal signals in technical analysis. This pattern typically signals a transition from seller exhaustion to renewed buying interest, hinting that BTC might be ready to flip the script if it breaks above a critical resistance level. With volatility compressing near key price zones, traders are watching closely for confirmation of the next move up.

Technical Breakdown: What the Chart Is Telling Us

If confirmed, technical analyst GandalfCrypto suggests the setup could push BTC toward a $130K target.

Here’s what makes this setup compelling:

• Left Shoulder: Formed during October’s pullback around $108K–$109K, showing early support
• Head: The lowest point near $103,700, marking peak selling pressure before buyers stepped in
• Right Shoulder: Currently taking shape as Bitcoin bounces back from around $109K, with higher lows suggesting stronger demand
• Neckline Resistance: The critical breakout zone sits at $115K–$116K—a daily close above this level would confirm the reversal pattern
• Price Target: Based on the pattern’s measured move (distance from head to neckline), the chart projects a technical target of roughly $130,000, implying a 12–14% rally from the breakout point
• Momentum Signals: Recent price action shows tighter ranges and stronger bounces, typical of bottoming behavior before a breakout
• Invalidation Risk: The pattern stays valid as long as Bitcoin holds above $108K; a break below would delay or cancel the reversal setup

The dotted projection path on Gandalf Cryptto’s chart illustrates how the breakout could unfold, with $130K serving as the ultimate destination if the pattern plays out.

Market Context and What’s Next

This pattern is emerging at an interesting time. Crypto sentiment is cautiously optimistic, Bitcoin ETF inflows have steadied, and broader macro conditions—like the pause in interest rate hikes—are helping risk assets regain footing. That backdrop could provide the fuel needed to push through resistance.

Right now, Bitcoin is coiled at a pivotal point. A clean break above $116K would validate the reversal and likely spark fresh momentum toward $125K–$130K. But if BTC fails to hold above $108K, the right shoulder collapses and downside risk comes back into play.