Fidelity: Bitcoin in Early Bull Market

Bitcoin is currently demonstrating price behavior characteristic of an "early bull market," according to Fidelity Investments’ Director of Global Macro, Jurrien Timmer.

So far, the bulls are refusing to yield despite facing very strong resistance.

The head-and-shoulders neckline

In a recent update on X, Timmer shared a detailed daily chart outlining Bitcoin's current market structure. The chart shows a massive macro head-and-shoulders topping pattern, characterized by a staggering peak at $126,251 and a subsequent drop to a local low of $60,033.

Bitcoin continues to challenge the neckline of a large head-and-shoulders top, while working off its overbought condition with little or no price damage. This is very much how early bull markets have generally behaved. pic.twitter.com/SrENfG23W0

— Jurrien Timmer (@TimmerFidelity) May 22, 2026

Currently, Bitcoin is charting a steady ascending channel out of that $60,033 bottom. The crypto king is currently attempting to challenge the critical "neckline" of the aforementioned head-and-shoulders pattern (roughly around the $80,500 level).

According to the slow stochastics momentum oscillator at the bottom of Timmer's chart, this recent upward grind has pushed Bitcoin into deeply "overbought" territory. A sharp rejection or sell-off is rather typical at overbought levels near major resistance, but BTC is holding its ground so far, which is rather notable.

"Bitcoin continues to challenge the neckline of a large head-and-shoulders top, while working off its overbought condition with little or no price damage," Timmer noted. "This is very much how early bull markets have generally behaved."

As reported by U.Today, Bitcoin's monthly Bollinger Bands have contracted to their "tightest ever" levels. In technical analysis, a prolonged Bollinger Band "squeeze" acts like a coiled spring, so the market could be on the verge of a massive move.

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