Bitcoin is consolidating above the $110,000 support after a neckline breakout, with neutral RSI and an improving MACD histogram; if $110K holds, analysts project a potential move toward $130K–$135K while a drop below $110K risks a retest of $100K–$105K.
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Inverse head and shoulders breakout with neckline holding near $110K — bullish if sustained.
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Momentum mixed: RSI ~46 (neutral) and MACD histogram positive, hinting at early recovery signs.
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Key levels — support $110K, resistance $120K–$122K; analyst target $135K if momentum continues.
Bitcoin consolidates above $110K support with RSI neutral and early MACD bullish signs; read concise expert analysis, key levels, and targets to $135K — actionable outlook and risk levels.
What is driving Bitcoin’s consolidation above $110K?
Bitcoin is consolidating above the $110,000 neckline after an inverse head and shoulders breakout, driven by profit-taking from the July peak and short-term buyers defending the breakout level. Technical indicators show neutral momentum but a positive MACD histogram, suggesting upside remains possible if support holds.
How reliable is the inverse head and shoulders breakout?
The inverse head and shoulders pattern is a widely recognized bullish reversal formation when the neckline is convincingly retested as support. Chart points: shoulders around $85K–$95K, head near $72K–$75K, and a neckline breakout observed at $108K–$110K in mid-July. Technical analyst Javon Marks notes the pattern’s confirmation depends on continued support above $110K and follow-through toward $120K–$122K. Source for price chart: TradingView (chart image included).
Frequently Asked Questions
Will Bitcoin hit $135,000 this cycle?
Analyst projections, including estimates from Javon Marks, set a target near $135,000 if the $110K support holds and momentum improves. This outcome requires confirmation via higher highs and sustained volume above $122K; it is not guaranteed and depends on market conditions.
How should traders manage risk around $110K?
Use $110,000 as a key technical stop-loss threshold: maintain position sizing that limits downside if price closes below $110K on daily charts and consider trimming exposure near $120K–$122K resistance.
Breakout Pattern Emerges with Neckline Retest
A clear inverse head and shoulders pattern developed with shoulders around $85K–$95K and a head near $72K–$75K. The neckline breakout at $108K–$110K occurred mid-July, followed by a retest where support held near $110K–$112K.
Momentum Indicators Show Mixed Signals
The 14-day RSI sits at 45.98, indicating neutral momentum, while the MACD histogram turned positive at 23.81. These readings reflect a market that has eased buying pressure but may be primed for a bullish crossover if upward momentum resumes.
BTC/USD 1-day price chart, Source: TradingView
Key Levels Define Next Move
Short-term consolidation is occurring between $112,000 and $115,000 after the July peak near $122,000. The immediate support to watch is $110,000; resistance remains $120,000–$122,000. A decisive break in either direction will define the next leg.
| Level | Range/Value | Implication |
|---|---|---|
| Support (neckline) | $110,000–$112,000 | Holds breakout; bullish continuation |
| Resistance | $120,000–$122,000 | Next decisive barrier for momentum |
| Upside target | $130,000–$135,000 | Analyst projection if momentum sustains |
| Downside risk | $100,000–$105,000 | Possible if $110K fails |
Key Takeaways
- Support confirmed: $110K neckline retest held, validating the breakout if sustained.
- Momentum mixed: RSI neutral (~46) with a positive MACD histogram suggesting early bullish potential.
- Plan risk: Use $110K as a risk anchor; monitor volume and daily closes for confirmation before increasing exposure.
Conclusion
Bitcoin’s consolidation above $110,000 after an inverse head and shoulders breakout presents a cautiously bullish setup. Market participants should watch RSI, MACD, volume, and the $120K–$122K resistance zone for confirmation. If support holds, the path toward $130K–$135K remains plausible; if not, prepare for a corrective move toward $100K–$105K. Published by COINOTAG on 2025-08-24.
