Key takeaways:
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A classic BTC price chart pattern puts $170,000-$360,000 in play this cycle.
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Spot Bitcoin ETFs post the biggest inflows in two months as institutional demand rebounds.
Bitcoin (BTC) price action has painted two inverse head-and-shoulders patterns on the weekly time frame, which hint at BTC’s “supercycle ignition” to $360,000, according to analysts.
BTC price technical analysis puts $360,000 in play
An inverse head-and-shoulders pattern (IH&S) is a bullish chart formation that forms with three troughs: a lower “head” between two higher “shoulders.” As a technical rule, a breakout above the pattern’s neckline is often followed by a parabolic price rise.
Related: Bitcoin price can hit $160K in October as MACD golden cross returns
Bitcoin’s weekly chart shows two IH&S patterns, as shown in the figure below. The first is a smaller one formed since November 2024 and resolved in July when the price broke above the neckline at $112,000. The recent rebound from this level suggests the formation is playing out.
The measured target for this pattern, the height added to the breakout point, is $170,000, or up 49% from the current level.
The second is a bigger IH&S pattern that has been forming since March 2021, projecting an even higher target for the asset.
Bitcoin broke above the neckline around $73,000 in November 2024 in a post-US election rally that pushed BTC price above $100,000 for the first time.
Bitcoin’s drop to $74,400 in April retested this level to confirm the breakout. With the pattern still in play, BTC price could continue its uptrend toward the measured target of $360,000, up 217% from the current levels.
“The Bitcoin inverse head and shoulders of dreams has now doubled,” said analyst Merlijn The Trader in a Wednesday X post, adding:
“This isn’t a pattern. It’s the supercycle ignition.”
As Cointelegraph reported, a similar formation on the four-hour chart projects a short-term target of $120,000 for the Bitcoin price as long as bulls hold above $113,000.
Institutional demand for Bitcoin recovers
Bitcoin’s potential to rise higher is reinforced by the return of inflows into spot Bitcoin exchange-traded funds (ETFs).
These investment products posted inflows for three consecutive days, between Monday and Wednesday, totaling $1.15 billion, per data from SoSoValue.
The $752 million inflows recorded on Wednesday were the highest since mid-July, and show that institutional demand is rebounding.
“Money is moving back into Bitcoin ETFs at a rapid rate as retailers impatiently drop out of crypto,” said market intelligence firm Santiment in a Wednesday X post, adding:
“Previous crypto rallies were boosted by inflow spikes like this.”
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