Is Bitcoin Heading for $127K? Double-Bottom Formation Suggests Breakout

Bitcoin may be gearing up for a powerful breakout toward the $127,000 mark. The asset has recently printed another double-bottom pattern, a technical signal that has previously led to major price rallies in 2024 and 2025.

After bouncing from $112,000 to over $117,000, BTC now consolidates between $112K–$124K, forming a solid base. Earlier this year, similar setups triggered 25–50% rallies, hinting at a similar outcome ahead.

Analyst Merlijn The Trader highlighted an inverse head-and-shoulders formation on Bitcoin's chart, with a neckline breakout confirmed near $113K. This pattern traditionally signals a shift from a downtrend to an uptrend, especially when followed by a successful retest.

Additionally, futures sentiment has turned positive after five consecutive bearish days. The CryptoQuant sentiment index, which tracks net flows and trader positioning, has rebounded, suggesting easing bearish pressure and renewed buying interest.

In conclusion, if current momentum holds, Bitcoin could be poised for its next major leg up — potentially testing and even surpassing $127,000 in the short term.