Bitcoin Technical Patterns Signal Potential Rally to $360,000
Bitcoin (BTC) has recently formed two notable inverse head-and-shoulders (IH&S) patterns on its weekly chart, a technical setup often associated with strong bullish momentum. These formations suggest the possibility of a significant price rally, potentially reaching as high as $360,000 in the current market cycle.
An IH&S pattern consists of three troughs with the middle trough (the “head”) being the lowest, flanked by two higher troughs (the “shoulders”). A decisive breakout above the neckline of this pattern typically precedes a parabolic price surge.
The first, smaller IH&S pattern emerged in November 2024 and was confirmed in July when Bitcoin surpassed the neckline near $112,000. The price’s recent rebound from this level supports the pattern’s validity, with a measured target of approximately $170,000—an increase of about 49% from present levels.
The second, larger IH&S pattern, dating back to March 2021, projects a more ambitious target. Bitcoin’s breakout above the $73,000 neckline in November 2024, driven by a post-US election rally, pushed prices above $100,000 for the first time. A subsequent retest at $74,400 in April reaffirmed this breakout. If this pattern holds, Bitcoin could continue its upward trajectory toward the $360,000 mark, representing a 217% gain from current prices.
Market analyst Merlijn The Trader described this development as the “supercycle ignition,” emphasizing the rarity and significance of such a doubling of the IH&S pattern.
Institutional Interest in Bitcoin ETFs Strengthens
Supporting these bullish technical signals is a resurgence in institutional demand, particularly in spot Bitcoin exchange-traded funds (ETFs). Data from SoSoValue indicates that spot Bitcoin ETFs have attracted $1.15 billion in inflows over three consecutive days, from Monday through Wednesday. The $752 million inflow on Wednesday alone was the highest since mid-July.
Market intelligence firm Santiment noted on social media that this rapid return of capital into Bitcoin ETFs contrasts with waning retail participation, suggesting that institutional investors are driving renewed momentum. Historically, similar inflow spikes have preceded significant crypto rallies.
While these technical and fundamental indicators point toward a potentially strong bullish phase for Bitcoin, market participants should remain cautious. Price predictions based on chart patterns carry inherent risks, and external factors such as regulatory developments and macroeconomic conditions could influence outcomes.
This article does not constitute investment advice. All trading involves risk, and readers should perform their own due diligence.
FinOracleAI — Market View
Bitcoin’s formation of dual inverse head-and-shoulders patterns, combined with robust inflows into spot Bitcoin ETFs, signals a positive short-term outlook. The technical setup suggests strong upside potential, while institutional demand provides fundamental support. However, volatility and external market risks remain notable. Investors should monitor ETF flow trends and price action near key support levels to gauge sustained momentum.
Impact: positive
