Is Bitcoin’s $127K Breakout Loading After Double-Bottom?

TL;DR

• Bitcoin charts indicate a confirmed inverse head and shoulders pattern with a breakout retest holding near $115K.
• Futures sentiment index flips positive after five bearish days, easing short-term pressure on Bitcoin markets.
• Price consolidates between $112K–$124K, while technical patterns suggest scope for another upward breakout.

Double-Bottom Structures in Play

Bitcoin has printed another double-bottom pattern, according to ZYN. Similar setups earlier this year were followed by sharp rallies. 

In April, BTC rose by more than 50%, moving from about $86,000 to over $125,000. A second pattern in June triggered a 25% climb, lifting the price from near $100,000 back to $125,000.

Notably, the latest structure is forming near $112,000, as BTC slipped to that level on Friday before it bounced off to over $117,000. So far, the asset’s price action is holding within a $112,000 to $124,000 range, reflecting consolidation after recent swings.

Inverse Head and Shoulders Formation

A chart shared by Merlijn The Trader shows Bitcoin completing an inverse head-and-shoulders. The left shoulder was formed in December 2024, the head in April 2025, near $70,000, and the right one in June 2025.

The neckline, which slopes upward, has now been broken and retested near $113,000. Holding above this zone is marked as confirmation of the breakout. Based on the scale of the setup, the pattern points toward higher levels if momentum continues.

Source: X

Futures Market Sentiment Turns Positive

Data from CryptoQuant analyst Darkfost shows BTC futures sentiment has moved back into positive territory after five days of negative readings. The sentiment index, which combines net taker flows, open interest, and long/short volumes, reflects short-term positioning in the derivatives market.

In early August, sentiment followed a similar path when the ratio dropped below -1 before recovering into positive territory. That shift coincided with a price rebound—the current bounce from -0.7 signals that bearish pressure has eased in recent sessions.

Source: CryptoQuant

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