Bitcoin Eyes $130K as Inverse Head and Shoulders Pattern Forms After Fed Rate Cut

Bitcoin forms an inverse head and shoulders pattern near $109K after the Fed rate cut.

A breakout above $116K could project a rally toward the $130K resistance zone.

Volume rise during the decline suggests repositioning rather than structural weakness.

Bitcoin’s short-term chart action reflects a potential reversal structure following the Federal Reserve’s rate cut. The market now focuses on whether the ongoing formation near the $116K neckline can confirm a breakout toward the $130K resistance zone.

Technical Structure Suggests Bullish Reversal Potential

The chart shared by CryptoPulse indicates that Bitcoin (BTC/USDT) may be entering a turning phase after a sustained correction. On the four-hour timeframe, the asset appears to be shaping an inverse head and shoulders pattern — a classical reversal signal often observed before new bullish trends develop.

Source: CryptoPulse_CRU on X

The formation features a deep central trough, the “head,” flanked by two higher shoulders, marking progressive stabilization in market sentiment. The neckline lies between $115K and $116K, a level that has repeatedly halted upward moves in recent sessions. A decisive close above this area could confirm the pattern and trigger a potential advance toward $130K, calculated from the head-to-neckline projection.

Volume trends support the structure’s reliability. Recent trading has reflected increased stability at $109K, indicative of investors’ accumulation in advance of a breakout. The symmetry of the pattern, along with sustained interest from the market participants, points to the fading control of bears, with buyers returning close to key technical levels.

Market Reaction to the Fed’s Rate Cut

Bitcoin’s setup emerges in a broader macro context defined by the Federal Reserve’s 25bps rate reduction. Historically, easing cycles tend to support digital assets as liquidity conditions improve. CryptoPulse’s analysis notes that the rate decision could strengthen risk appetite, creating favorable conditions for Bitcoin’s mid-term recovery.

A confirmed breakout above $116K, supported by expanding volume, could propel the price toward $129K–$130K — a region aligning with previous supply levels observed earlier in the year. Conversely, rejection at the neckline might prompt a pullback toward $108K–$110K, forming a right shoulder retest before continuation.

The behavior as of the time of writing, reflects cautious optimism. Traders appear to be recalibrating exposure rather than abandoning positions, as seen through sustained liquidity and moderate price reaction. This equilibrium may define the base for the next directional move once confirmation signals emerge.

Short-Term Price Action and Broader Outlook

Data from CoinMarketCap as of writing shows Bitcoin trading near $109,388, down 3.43% in the last 24 hours. Despite the decline, trading volume has risen by over 9%, reaching $72.06 billion. The increase in volume alongside falling prices points to active repositioning and stop-loss activity rather than structural deterioration.

The intraday structure shows a bias to the downside, with several failed recoveries around $111K–$112K and support consolidates around $108K. If the price does not hold above $110K, $107.5K becomes the next important technical support zone, followed by the psychological $105K barrier. A close above $111K would help re-establish short-term momentum and potentially confirm the developing reversal pattern.

Market analyst Tom Tucker observes that Bitcoin’s historical October performance tends to favor bullish outcomes, suggesting seasonal resilience. Combined with improved liquidity conditions after the Fed’s move, the broader setup implies that Bitcoin may be undergoing temporary adjustment rather than entering a renewed downtrend.

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