Bitcoin (BTC) has formed a textbook inverse Head & Shoulders pattern on its weekly chart, according to market analyst Crypto Tice. This technical formation, often signaling a potential trend reversal from accumulation to expansion, emerged as Bitcoin's price action displayed three distinct phases: an initial "Left Shoulder" rally, a deep decline forming the "Head," and a subsequent climb creating a higher "Right Shoulder." The pattern suggests sellers are losing momentum while bulls are gradually asserting control.
Crypto Tice highlighted a horizontal neckline across previous swing highs as a pivotal level. Bitcoin is currently retesting this trendline, which the analyst views not as weakness but as confirmation the structure is holding. A decisive breakout above this neckline could set the stage for a significant rally. Based on the pattern's measurements, Crypto Tice has projected a long-term price target of $215,000, representing a roughly 231% increase from current levels near $65,000. He acknowledged that such a move may seem unrealistic amid recent bearish pressure but drew parallels to past cycles where Bitcoin defied odds to reach new all-time highs.
Concurrently, other metrics paint a more cautious picture. Bitcoin has slipped into a historically depressed valuation band on the Mayer Multiple Z Score chart. Analyst Marcus Corvinus noted the indicator has fallen below -0.9, a zone associated with major past drawdowns in 2014-2015, late 2018, March 2020, and the 2022 bear market. Corvinus described this as one of Bitcoin's "deepest bear market zones," often characterized by extended, uneven trading that wears on sentiment, where stronger holders build positions while broader confidence remains weak.
Adding to the short-term pressure, a liquidity heatmap shared by trader Killa reveals a dense cluster of resting sell orders between $71,500 and $74,000 across major exchanges like Binance, Bybit, and BitMEX. This large overhead liquidity pocket, formed as price slid from the high $70,000s to the low $60,000s before a partial rebound, indicates a significant volume of pending sell orders just above the current trading range. This structure suggests price may rotate between recent lows and this overhead resistance rather than moving in a straight line.
