Bitcoin (BTC) may have stalled after Friday’s weak U.S. jobs data, which strengthened expectations for Federal Reserve rate cuts, but technical charts point to a potential bullish turnaround.

Short-term analysis indicates BTC is forming an inverse head-and-shoulders (H&S) pattern, a classic reversal setup that suggests a possible surge toward $120,000.

The inverse H&S pattern consists of three troughs: a deeper middle trough (the “head”) flanked by two smaller, roughly equal troughs (the “shoulders”). A horizontal trendline, known as the neckline, connects the peaks of the recoveries between the troughs. A decisive breakout above the neckline confirms a shift from downtrend to uptrend, with a typical target equal to the distance from the head to the neckline.

Currently, BTC appears to be forming the right shoulder, with neckline resistance around $113,378. A breakout above this level could trigger a rally toward $120,000. Conversely, a drop below $107,300 would invalidate the pattern and shift focus to the 200-day simple moving average near $101,850, reinforcing the bearish scenario on the daily chart.