Bitcoin, a pioneering cryptocurrency, appears to be in the process of forming a reverse head and shoulder (IHS) pattern.
Bitcoin is currently changing its hands at $111,491, according to Coingecko data. Cryptocurrency has dropped by 2% over the past 24 hours.
Potential bullish reversal
This is a bullish inversion pattern, usually indicating the onset of a new uptrend. It is characterized by its head being pinched between two shoulders. The left shoulder reflects that around $110,500, while the left shoulder reflects that around the same price range. The pattern length is $108,000, marking the Bitcoin local low recorded on August 26th.
On the hourly chart shared by renowned trader Josh Orschuwitz, the “neckline” is at the $112,500 level. This is the horizontal resistance that Bitcoin needs to cross to resume. If Bitcoin can pull off a compelling breakout on top of the Macline, check out the uptrends.
1h $ btc ihs pic.twitter.com/0pvsnpgu73
– carpenoctom (@carpenoctom) August 27, 2025
It should be noted that if there is no clear breakout, the pattern in question may still fail.
Faced with a “double top” pattern
As reported by U.Today, prominent trader Peter Brandt recently warned that Bitcoin is facing a double-top pattern following a recent revision.
To avoid such a bearish setup, the Bitcoin Bulls need to regain the Make-or-Break $117,570 level.
Previously, Brandt claimed there was a 30% chance that Bitcoin had peaked in August.
According to Coingecko data, the world's leading lifetime highest is currently $124,128. Bitcoin is currently down nearly 10% from its local peak.
