Prominent trader Josh Olszewicz claims that Bitcoin, the flagship cryptocurrency, has formed what appears to be an inverse head and shoulders pattern (iHS).Â
Bitcoin is currently changing hands at $112,009, declining by 3.4% over the past week.Â
Much-coveted bullish patternÂ
The bullish reversal pattern typically appears following a prolonged downtrend, which is not the case in this particular case since Bitcoin has seen months of sideways action. Â
The pattern is typically comprised of left and right shoulders, as well as the head.Â
The chart shared by Olszewicz shows Bitcoin’s price action over a period from May to November, specifically focusing on the cryptocurrency’s price action from November until May.Â
Bitcoin logged a low in late August, which can be seen as the potential left shoulder on the chart. The lower from mid-September can be identified as the potential head. Meanwhile, the cryptocurrency’s current price action can be interpreted as the right shoulder of the much-coveted pattern, but it remains unclear whether it has been fully formed.Â
The pattern would be confirmed if there is a breakout above the neckline.Â
Eyeing $130,000?Â
The chartist has projected a potential target of roughly $134,000 if the aforementioned breakout does occur. The main resistance levels are $127,000 and $119,000.Â
Tiny odds of record highsÂ
According to Polymarket bettors, Bitcoin has only a 2% chance of surging to the $125,000 level.Â
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At the same time, the cryptocurrency has a 28% chance of plunging to $107,000.
This shows just how bearish the crypto market sentiment currently is.Â