A recent analysis indicates that bitcoin has surpassed the $113,600 mark, driven by a softer-than-expected U.S. Producer Price Index (PPI). This upward movement confirms the presence of a bullish inverse head and shoulders pattern that analysts identified earlier in the week. This breakout signifies a possible end to the recent pullback from bitcoin’s record highs, which exceeded $124,000, and suggests the potential resumption of its overall rally.
Using a technique known as the measured move, analysts estimate that bitcoin could potentially reach nearly $120,000. This metric adds the distance between the pattern’s low and the breakout point to the breakout level, providing a clearer picture of potential future price movement.
Support for this bullish momentum is further reinforced by the ascending 50-, 100-, and 200-hour simple moving averages (SMAs), which indicate a strengthening upward trend. Additionally, the MACD histogram on the daily chart has crossed above zero, pointing to a positive shift in market sentiment that favors bulls in the current landscape.
However, while bullish momentum appears robust, traders should remain cautious as they navigate possible resistance levels. The 50-day SMA stands as a significant checkpoint around $114,700, which may test the resolve of bulls moving forward. Conversely, a recent higher low established around $110,000 serves as a critical threshold for bears looking to assert their influence in the market.
Overall, the current indicators suggest a revitalized bullish outlook for bitcoin, with traders attentive to both resistance and support levels as they strategize for the days ahead.
