Bitcoin remains in a critical consolidation phase as it retests the $115,000–$116,000 neckline of a confirmed inverse Head & Shoulders pattern formed between December 2024 and June 2025 [1]. The initial breakout above $113,000 triggered a rally to nearly $144,000 before the price stabilized above $117,500, indicating sustained bullish momentum. Analysts note that the neckline, once a resistance cluster between $105,000 and $110,000, has transformed into a support level amid this retest, a textbook move in technical analysis [1].
The weekly chart reveals that Bitcoin has maintained higher highs and higher lows since the breakout, reinforcing the integrity of the bullish structure [1]. Current price action between $115,000 and $116,000 suggests buyers are defending this key support zone. A successful hold above this range could validate the pattern, historically signaling a continuation of the upward trend. CoinMarketCap data shows Bitcoin trading at $117,594.94, with a 1.79% gain over 24 hours, though 24-hour trading volume dipped by 26.54% to $69.31 billion [1].
Further momentum hinges on breaking above $118,800, a level identified by Captain Faibik as critical for confirming a wedge pattern breakout [2]. A clear breach could propel Bitcoin toward $125,000, with the wedge’s upper boundary potentially acting as dynamic resistance. This scenario aligns with broader institutional confidence, as open interest reached a record $44.5 billion, reflecting heightened leveraged activity and potential volatility [3]. Analysts caution that while increased open interest often correlates with price surges, it can also amplify drawdowns if sentiment shifts.
The upcoming Federal Reserve meeting on July 29 adds another layer of uncertainty. A rate cut announcement could accelerate capital inflows into risk-on assets like Bitcoin, particularly as ETF-driven institutional demand continues to shape market dynamics. Unlike past cycles, the current environment is marked by sustained ETF inflows and a more liquid derivatives market, altering traditional correction patterns observed in 2017 and 2021 [1].
Price action and technical indicators suggest bulls are in control, but traders remain cautious about short-term volatility. The inverse Head & Shoulders pattern’s confirmation and wedge pattern’s breakout are pivotal near-term triggers. Given the interplay of technical structure, open interest, and macroeconomic catalysts, Bitcoin’s trajectory above $115,000–$116,000 could set the stage for a renewed leg higher in the coming weeks.
Source:
[1] [Bitcoin Retests Weekly Neckline at $115K–$116K as Bulls Defend Breakout Structure](https://cryptofrontnews.com/bitcoin-retests-weekly-neckline-at-115k-116k/)
[2] [CaptainFaibik(X)](https://cryptofrontnews.com/bitcoin-retests-weekly-neckline-at-115k-116k/)
[3] [CryptoQuant](https://cryptofrontnews.com/bitcoin-retests-weekly-neckline-at-115k-116k/)
