In recent days, Bitcoin has been hovering around the $120,000 mark, indicating potential market consolidation after struggling to maintain a position above $118,000. However, despite the surface volatility, a promising bullish formation is emerging. Market analyst Jamie Crypto believes Bitcoin has formed an ideal inverted head and shoulders pattern, suggesting a major upward movement could be just around the corner.
Indicators of a Bullish Trend
This past week, Bitcoin encountered a minor correction, peaking earlier at $119,400 before experiencing a decline, notably hitting around $115,200 on August 1. At present, Bitcoin remains below $115,000. But analyst Jamie Crypto’s insightful analysis suggests that the cryptocurrency could be gearing up for an ascent toward $145,000.
The chart shared on the social platform X reveals the classic inverted head and shoulders pattern, recognized as one of the most dependable bullish reversal signals in technical analysis. The structure involves a pronounced head formed between March and April 2025, flanked by left and right shoulders created in early February and throughout June and July, respectively. A significant breakout occurred when Bitcoin crossed the neckline at $110,000, eventually spiking to a new all-time high of $122,838 on July 14.
The subsequent price action represents what Jamie calls a “bullish retest,” where Bitcoin checks back at the breakout level without dipping below the neckline. This reinforces the idea that the former resistance level is now acting as support, presenting a strong bullish signal.
As Jamie emphasized, this pattern meets all technical criteria, and significant market movements frequently start quietly before experiencing explosive growth. In terms of upward price targets, the analysis indicates a potential jump to $145,000 if Bitcoin can rebound effectively from the breakout line, as illustrated in the accompanying 3-day candlestick chart.
Market Sentiment Influenced by ETF Activity
Nevertheless, amidst this bullish pattern, the latter part of the week revealed a more cautious market sentiment. Bitcoin’s inability to maintain a position above $118,500 triggered a selling wave, resulting in a notable retracement over the weekend.
This downturn can primarily be attributed to a combination of several factors: concerns stemming from recent US tariff announcements, profit-taking by traders at perceived resistance levels, and the performance of US Spot Bitcoin ETFs. These issues contributed to a dip to $112,200 on August 2.
On August 1, US-based Spot Bitcoin funds faced one of their most challenging days of 2025, reporting net outflows exceeding $812.25 million. This significant shift followed weeks of positive inflows and likely resulted in increased downward pressure as institutional interest temporarily diminished.
Currently, Bitcoin is trading at $114,260, reflecting a 0.8% increase in the last 24 hours. Achieving the $145,000 target would signify a substantial 27% rise from the present market conditions.
