Market technical analyst Aksel Kibar has identified a potential inverse head-and-shoulders pattern forming on Bitcoin's (BTC) daily chart, a critical signal that may indicate an upcoming trend reversal. Since midnight UTC, the price of BTC has climbed 3%, rapidly approaching a key technical level that could determine its next major move.

Structurally, this pattern has been developing since the June low, consisting of three troughs where the middle trough is the deepest, with brief rallies occurring between each trough. Tech Charts had previously highlighted this technical feature, noting that a line connecting the rally highs forms the 'neckline' of this inverse pattern. BTC is currently trading around $66,500, just below the neckline resistance level of approximately $66,600.

If BTC successfully breaks above and holds the neckline, it would confirm the inverse head-and-shoulders pattern, with a projected price target of $76,000. This figure is derived from measuring the vertical distance from the head to the neckline. The pattern has been gradually forming since early June, set against the backdrop of a sustained pullback from the October peak of $126,000.

Traders are closely monitoring this technical signal to determine whether it truly heralds a fresh upward trend. Should the breakout prove valid, the market may gain confirmation that the bear phase is potentially nearing its end, laying a directional foundation for future price action.