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The Bitcoin price actionis 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 forecastan 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. Related Reading Bitcoin $166,000 Target Still In Play? The Extension That Determines Where Price Goes Next 2 weeks ago
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 declinefollowed 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. BTC gears up for a massive reversal | Source: Gert Van Lagen on X
Based on the measured move of the Inverse Head and Shoulder, Lagen predicts that Bitcoin is on track to reach $300,000this 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 theorythat suggests that a strong Wave 5could 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 invalidatedif BTC drops below $72,900 in the weekly timeframe. Furthermore, a break below this threshold could signal a deeper price correctionand 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. Related Reading Bitcoin Flag Pole Pattern Puts Price At $120,000, Analyst Explains The Roadmap 2 weeks ago
The cryptocurrency was trading above $92,000 the previous day. However, Bitcoin has been down9.18% 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. BTC trading at $84,033 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from Adobe Stock, chart from Tradingview.com