BTC Is Now Forming a Strong Technical Foundation for the Next Leg of Its Bull Market

A well-known crypto analyst believes that BTC is now forming a strong technical foundation for the next leg of its bull market.

A well-known crypto analyst says that BTC is now forming a strong technical foundation for the next leg of its bull market.

Pseudonymous strategist Dave the Wave thinks that Bitcoin may be forming a classic bullish reversal pattern: the inverse head-and-shoulders.

Inverse Head-and-Shoulders Suggests Market Is Bottoming

According to Dave the Wave, BTC’s current daily price structure resembles a potential inverse head-and-shoulders pattern, a setup traditionally seen as a bullish signal indicating sellers are weakening and buyers are stepping in.

“With a push through the first line of resistance, the neckline of a possible BTC reverse [head and shoulders] would be formed… a great basing pattern,” he said.

His chart suggests Bitcoin could surge to around $89,000, before pulling back to the $77,000 support zone, and eventually launching a run to new all-time highs above $110,000.

“Any objective observer of the chart, unfamiliar with the market and not being caught up in it, will no doubt wonder what the panic is regarding price. But this is a natural reaction to the way in which crowd psychology and emotional extremes can distort investor perception, especially during periods of minor correction.

Long-Term Uptrend Remains Intact

Despite bearish sentiment in the market, the analyst says Bitcoin’s macro trend remains healthy. Dave emphasized that BTC’s price movements — while appearing volatile to some — fit within a consistent pattern of rallies and corrections.

“This thinking is largely fueled by the 'money illusion'—the tendency to focus on the nominal value of money rather than its purchasing power. As prices rise, we may feel poorer, leading to panic and a skewed perspective on the bigger picture.”

He explained that crowd psychology and emotional reactions often distort investor perception, particularly during periods of minor corrections.

“Most of those more closely tied to the market… are currently in a state of near panic. The explanation of this phenomenon, in my opinion, is collective/crowd sentiment on the one hand, and 'money illusion' on the other.”

The Bottom May Already Be In

Dave the Wave’s analysis suggests that BTC may be nearing the end of its current correction, and that a long-term rally is still in play. If the inverse head-and-shoulders pattern confirms, it could be the springboard for a new bullish breakout toward six-figure territory.