Inverse Head and Shoulders

Definition ∞ The inverse head and shoulders is a bullish chart pattern observed in technical analysis, suggesting a potential reversal from a downtrend to an uptrend. It consists of three price troughs, with the middle one (the head) being the lowest, flanked by two shallower troughs (the shoulders). A break above the pattern’s neckline confirms the bullish signal.
Context ∞ Technical analysts frequently cite the inverse head and shoulders pattern in Bitcoin and altcoin price analyses, particularly in crypto news reports. Its appearance often prompts discussions about potential market bottoms and the start of new upward price movements. Traders use this pattern to anticipate shifts in market momentum and inform their trading decisions.