TL;DR

Analyst Merlijn sees Bitcoin forming two inverse head and shoulders patterns, projecting a $150K rally. Resistance near $111K remains firm, with downside targets near $103K if the price fails to break higher. Businesses allocate 22% of their profits into Bitcoin, while institutions add $43.5B to their balance sheets in 2025.

Double Inverse Head and Shoulders Formation

Crypto analyst Merlijn The Trader has identified what he calls a “supercycle formation” on Bitcoin’s long-term chart. He pointed to two inverse head and shoulders patterns, a setup often linked to major bullish reversals.

THE INVERSE HEAD SHOULDERS OF DREAMS

Left shoulder. Head. Right shoulder.

Not one but two.

It’s the supercycle formation.

This is the setup of a generation. Dont fade it.$BTC to $150K. Locked in. pic.twitter.com/imyHqJKjkC

The first pattern stretches from 2021 to 2024, with the left shoulder during the 2021–2022 peak and correction, the head at the 2022 low near $15,000, and the right shoulder during the 2023–2024 recovery. A second, smaller inverse head and shoulders has formed in the $70,000–$95,000 range in 2025. Merlijn said:

“This is the setup of a generation. Don’t fade it. $BTC to $150K. Locked in.”

Notably, the neckline of the smaller pattern is near $95,000. As long as the price holds above it, the projection is for a run toward $150,000. Bitcoin is currently trading around $111,000, with consolidation seen in the $110,000–$115,000 zone.

Resistance and Short-Term Pressure

Michaël van de Poppe offered a shorter-term view, pointing to resistance at $111,918, which also lines up with the 20-week EMA. Bitcoin has struggled to close above this level.

He commented:

“Resistance remains resistance, couldn’t break through it, similarly for the 20-Week EMA. If this isn’t breaking through, I would project we’re making a new low and that’s where you need to go max long #Altcoins.”

If resistance holds, charts show a possible drop toward $103,000–$101,000, an area marked as a potential re-entry point for buyers.

Source: X

Cycle Outlook Into 2025

Analyst Ted compared Bitcoin’s market action with the Wall Street Cheat Sheet cycle. He sees September 2025 as a period of sideways or bearish action, followed by a strong Q4 rally.

According to his outlook, a blow-off top could arrive in December 2025 or January 2026, echoing past cycle peaks. He said:

“September could be bearish or sideways, followed by a massive rally in Q4. The blow-off top will be in Dec 2025 or Jan 2026, just like the past cycles.”

Afterward, he expects a sharp correction into early 2026.

At the same time, Bitcoin adoption is strengthening. Analyst Lucky noted that businesses are now allocating around 22% of profits into Bitcoin. He also reported that institutions have added $43.5 billion worth of Bitcoin to balance sheets in 2025 alone.

He wrote:

“With thousands of businesses buying Bitcoin daily, it shows no signs of slowing down.”

This trend adds a fundamental layer of support alongside technical projections, with institutional and corporate demand reinforcing long-term growth expectations.