Bitcoin has spent the past week trading below $120,000, showing signs of fatigue after failing to hold above $118,000. However, a major bullish pattern has quietly taken shape beneath the surface volatility. According to crypto analyst Merlijn The Trader, Bitcoin has now completed a perfect inverted head and shoulders pattern, and a possible macro move is underway. Technical Pattern Breakout Points To Bullishness Bitcoin slipped into a correction following an early-week high of $119,400 on July 28, with Friday, August 1, witnessing the most decline as the price fell to levels just below $115,200. At the time of writing, Bitcoin is still trading below $115,000, but according to an interesting technical analysis by crypto analyst Merlijn The Trader, Bitcoin is still on track to launch toward $145,000. The chart, which was initially shared on the social media platform X, illustrates a classic inverted head and shoulders pattern. This pattern is arguably one of the most reliable bullish reversal formations in technical analysis. The setup features a deep head between March and April 2025, flanked by a left shoulder in early February and a right shoulder that took shape across June and July. The upside breakout occurred when Bitcoin decisively moved above the neckline at $110,000, and eventually pushed to its most recent all-time high of $122,838 on July 14. However, the ensuing retest after this peak until the time of writing is what Merlijn refers to as a “bullish retest,” in which price revisits the breakout level without breaching below the neckline. This is a strong indicator that the previous neckline resistance has now become support. As noted by Merlijn, this pattern checks every technical box, and major moves in the crypto market often begin subtly before erupting violently. In terms of a price target, the chart’s projection is a potential surge to $145,000. This projection is based on if Bitcoin can successfully bounce upward on the breakout line, as shown in the 3-day candlestick price chart above. ETF Outflows Dampen Sentiment Momentarily Despite the bullish formation, price action in the latter part of the week painted a more sobering picture. Bitcoin’s failure to hold $118,500 prompted a wave of selling , culminating in a strong retracement over the weekend. This crash can be attributed to a trifecta of pressure points: fears caused by new US tariff announcements on Friday, traders locking in profits near resistance, and the performance of US Spot Bitcoin ETFs. These elements collectively caused a retrace to $112,200 on Saturday, August 2. On August 1, these US-based Spot funds recorded one of their worst days in 2025, shedding over $812.25 million in net outflows. This was a strong reversal after consecutive weeks of inflows and likely contributed to downward price momentum as institutional demand briefly waned. At the time of writing, Bitcoin is trading at $114,260, up by 0.8% in the past 24 hours. A surge to the $145,000 price target would translate to a 27% increase from the current price levels.
