Bitcoin’s price action has sparked fresh optimism among traders, with analysts pointing to two inverse head-and-shoulders (IH&S) formations on the weekly chart.
These patterns, typically bullish, suggest the possibility of a long-term rally that could propel BTC to $360,000.
The current price sits near $115,390.
Smaller Pattern Confirms Breakout
The first IH&S has been in play since November 2024.
Bitcoin broke above the neckline in July at $112,000, confirming the bullish structure.
The measured target for this pattern is around $170,000, implying a nearly 50% gain from current levels.
The rebound from $112,000 indicates that the formation remains intact.
Larger Supercycle Formation
The second IH&S pattern stretches back to March 2021.
Bitcoin crossed above its neckline near $73,000 in November 2024, shortly after the U.S. elections, pushing prices beyond $100,000.
A subsequent retest of $74,400 in April confirmed the breakout, strengthening confidence in the bullish projection.
If the pattern continues to unfold, analysts see Bitcoin climbing as high as $360,000, a 217% increase from present levels.
Analysts Call It “Supercycle Ignition”
Market analyst Merlijn The Trader described the setup as extraordinary.
“The Bitcoin inverse head and shoulders of dreams has now doubled,” he said in a Wednesday post.
“This isn’t a pattern. It’s the supercycle ignition.”
The sentiment underscores growing excitement that Bitcoin could be entering a historic phase of growth.
Short-Term Outlook Remains Bullish
On shorter timeframes, technical analysis also favors upside.
As reported by Cointelegraph, a similar formation on the four-hour chart suggests a near-term target of $120,000, provided BTC holds above $113,000.
This shorter rally would align with broader bullish momentum, giving traders confidence in further gains.
ETFs Fuel Institutional Demand
Institutional participation is also on the rise.
Spot Bitcoin ETFs recorded three straight days of inflows between Monday and Wednesday, totaling $1.15 billion.
The $752 million of inflows on Wednesday marked the strongest single-day figure since mid-July.
Analysts believe this renewed demand reflects growing confidence among institutions even as retail participation wanes.
Market intelligence firm Santiment commented on the surge, saying:
“Money is moving back into Bitcoin ETFs at a rapid rate as retailers impatiently drop out of crypto. Previous crypto rallies were boosted by inflow spikes like this.”
Path Toward Higher Targets
The combination of strong technical structures and institutional inflows provides a supportive backdrop for Bitcoin.
If momentum continues, the possibility of a parabolic rise toward $170,000, and eventually $360,000, cannot be dismissed.
For now, traders are closely watching the $113,000 support and ETF inflow trends as key signals of whether the “supercycle ignition” thesis will hold.
