Bitcoin recently lost the $113,000 level, leading to a cooling of leverage use and speculative bets, creating potential for upside volatility. A breakout above $113,650 could confirm an inverse head-and-shoulders pattern, driving BTC toward $120,000. Data shows improved price momentum and a market entering the final stages of its “repair zone.”

Bitcoin researcher Axel Adler Jr. noted that futures data suggests traders are taking a step back, with reduced leverage and a balance phase in the market. Historical cooling phases have often set the stage for stronger uptrends, like in Q2 when prices consolidated around $80,000 before rallying higher. This time, fewer overcrowded long positions may lead to upside volatility.

Bitcoin is forming a bullish inverse head-and-shoulders pattern on the four-hour chart, with a key breakout level at $113,650. A confirmed breakout could lead to a nearly 5.5% rally toward $120,000. Momentum signals are turning supportive, with the RSI stabilizing above 50 and approaching a crucial technical flip with moving averages clustering near current levels.

Read more at CoinTelegraph: BTC Primed For $120K Breakout After Cooling Phase Ends